How are sunk costs and fixed costs related?
A) They are not related in any way.
B) Sunk costs cannot be recovered and fixed costs can be avoided by shutting down.
C) In the short run they are equal to each other.
D) In the long run they are equal to each other.
Answer: C
You might also like to view...
Alan purchases 10 percent fewer bags of chips when his income decreases by 5 percent. Based on only this information, we know that for Alan
A) chips are a normal good. B) chips are a complement to salsa. C) chips are a substitute for pretzels. D) chips are an inferior good. E) the price of chips fell.
In the above figure, in order to promote an efficient allocation of resources, the government could grant a subsidy equal to
A) zero. B) $5 per unit. C) $10 per unit. D) $15 per unit.
In a two-period model with production, an increase in the world real interest rate
A) increases domestic output and increases the current account surplus. B) increases domestic output and decreases the current account surplus. C) decreases domestic output and increases the current account surplus. D) decreases domestic output and decreases the current account surplus.
Which of the following is not a sport finance issue?
a. valuation of sports teams b. borrowing of money to finance sport ventures c. stadium funding d. sports apparel e. none of these