Sunk costs should be ignored in decision making because they
a. increase the cost of the transaction
b. lead to an increase in the opportunity cost of any decision
c. have already been paid
d. often exceed marginal and average costs
e. are usually negligible when compared with the explicit costs of decisions
C
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If the Fed wishes to decrease the supply of money and credit, it may sell government securities, raise the discount rate, or lower required reserve ratios
Indicate whether the statement is true or false
There is no such thing as a free lunch." This is an example of which economic concept?
A. Maximization B. Trade-offs C. Basic necessities D. Income effect
Annual expenditures by the federal government exhibited an upward trend, rising from $3 billion in 1930 to more than $1 trillion in 2010
a. True b. False Indicate whether the statement is true or false
The second-largest cash transfer program(s) in the United States, smaller than only the Social Security system, is(are) the
A. Supplemental Nutrition Assistance (SNAP) program. B. Medicare and Medicaid programs. C. unemployment insurance program. D. Temporary Assistance to Needy Families (TANF) program.