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:

Percent

A part per hundred ratio, a way of expressing a number as a fraction of 100.

Decimal

A number representing a fraction or a whole number using a point to separate the whole part from the fractional part.

Fraction

A mathematical expression representing the division of one integer by another, written in the form \(a/b\).

Ratio

A mathematical expression that compares two or more quantities, showing the relative sizes of two or more values.