Which One of the Following Is Most Likely a Sunk

question 275

Multiple Choice

Which one of the following is most likely a sunk cost?

• A) the money you spent last week fixing your car's transmission
• B) the market value of an idle machine which you have decided to use for a new project
• C) the cost of a worker to operate an idle machine which you have decided to use for a new project
• D) the cost of the health insurance which you must pay a worker that you plan to hire for a new project
• E) the reduction in sales of an existing product caused by the introduction of a new product

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