Choose the Statement That Is Incorrect

question 87

Multiple Choice

Choose the statement that is incorrect.

• A)Expenditure on a plant that has no resale value is a sunk cost.
• B)A sunk cost is irrelevant to a firm's current decisions.
• C)A cost that influences a firm's current decisions is the short-run cost of changing its labour inputs.
• D)A cost that influences a firm's current decisions is the long-run cost of changing its plant.
• E)The short run is a time frame in which a firm can change its plant.

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Definitions:

Equilibrium Price

Equilibrium price is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Demand Increases

A situation where consumers are willing and able to purchase more of a product or service at the same price, shifting the demand curve to the right.

Supply Decreases

This term describes a situation in which the quantity of a good or service that producers are willing and able to offer for sale at various prices diminishes.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.