If a short-run fixed cost is sunk, then
A) losses can be minimized by shutting down.
B) the firm should keep producing to cover the sunk cost.
C) the cost cannot be avoided by shutting down.
D) Both B and C.
C
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A country will likely experience an increase in poverty if
A) its population decreases over time. B) its real GDP per person growth rate increases over time. C) it does not receive foreign aid. D) its inflation rate decreases or slows over time. E) its real GDP growth rate decreases or slows over time.
An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
The branch of economic theory that analyzes decisions about education and training is
a. welfare economics. b. equilibrium analysis. c. human capital theory. d. consumption theory.
Most labor economists believe that the supply of labor is much more elastic than the demand
a. True b. False Indicate whether the statement is true or false