You Have Just Purchased a Car for $20,000 and Realized

question 122

Multiple Choice

You have just purchased a car for $20,000 and realized that you still have to pay for insurance,licence,parking and gasoline.The $20,000 spent on the car represents

• A) sunk cost.
• B) opportunity cost.
• C) marginal cost.
• D) average cost.
• E) total costs.

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Definitions:

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in the production process.

Separating Equilibrium

A situation in a game or market where different types of participants (often with private information) are sorted into different groups based on their actions or choices.

Klutzes

Informal for clumsy people who are often prone to accidents or mishandling objects.

Dull Lectures

Boring or unenthusiastic presentations or talks, often resulting in little interest or engagement from the audience.