A decision maker can always make the best choice by:
A. including sunk costs as part of marginal costs.
B. including sunk costs as part of total costs.
C. ignoring sunk costs.
D. subtracting sunk costs from total benefits.
C. ignoring sunk costs.
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The OPEC oil shocks in 1973-1974 are an example of:
A) favorable supply shock, shifting the short-run aggregate supply curve rightward.
B) favorable supply shock, shifting the short-run aggregate supply curve leftward.
C) adverse supply shock, shifting the short-run aggregate supply curve rightward.
D) adverse supply shock, shifting the short-run aggregate supply curve leftward.
If your nominal income is $75,000 and your real income in base year prices is $60,000, what is the CPI?
A) 250 B) 125 C) 80 D) 200 E) 100
In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price
Indicate whether the statement is true or false
Policymakers in a country with a balance of payments surplus may not want to see their country's currency appreciate because this would
A) hurt consumers in their country by making foreign goods more expensive. B) hurt domestic businesses by making foreign goods cheaper in their country. C) increase inflation in their country. D) decrease the wealth of the country.