Give an example of a sunk cost and describe how sunk costs should affect future actions.
What will be an ideal response?
Student responses should demonstrate an understanding that sunk costs are costs that have already been incurred and cannot be recovered. They should not affect future actions. One example might be a food truck that left its spot near the train station to go across town to the beach. The truck owner expected the beach to be busy, but the weather turned cold and no customers are there after all. Under the circumstances, the food truck owner should ignore the sunk cost of having driven to the beach and return to her spot near the train station.
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Which statement is most accurate about social indicators in the US between 1950 and 1980?
a. The divorce rate doubled. b. The suicide rate rose sharply. c. The murder rate remained relatively constant. d. The birth rate for unmarried women remained relatively constant.
Countries with low levels of GDP per capita usually also have:
A. low levels of schooling. B. high levels of schooling. C. mandatory military service. D. highly developed infrastructures.
A monopolist faces a horizontal demand schedule
a. True b. False Indicate whether the statement is true or false
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.