Fixed Costs Are Ignored in Allocating Scarce Resources Because

question 19

Multiple Choice

Fixed costs are ignored in allocating scarce resources because

• A)they are sunk.
• B)they are unaffected by the allocation of scarce resources.
• C)there are no fixed costs associated with scarce resources.
• D)fixed costs only apply to long-run decisions.

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Definitions:

Unconditioned Response

Natural, automatic reaction to a stimulus that occurs without any need for prior learning or conditioning.

Loud Noise

A sound that is significantly high in volume and can potentially cause hearing damage or discomfort.

Conditioned Emotional

A learned emotional response to a previously neutral stimulus through conditioning.

Acquired Fear

A type of fear that is learned through experience or conditioning, rather than innate.