Sunk Costs Cannot Affect a Firm's Short-Run Supply,but They Can

question 31

True/False

Sunk costs cannot affect a firm's short-run supply,but they can affect its long-run decision to exit the industry.

---

Definitions:

Primary Storage

The main storage area in a computer system, typically RAM, where the operating system, application programs, and data in current use are kept so they can be quickly reached by the computer's processor.

Secondary Storage

A type of computer storage separate from the main memory, used for keeping data and programs permanently, often referred to as external or auxiliary storage.

Primary Storage

The main storage of a computer where data is stored temporarily for quick access by the processor.

Volatile

Characterized by or subject to rapid or unexpected change, often used to describe financial markets or memory storage that requires power to maintain stored information.