When Economists Refer to a Production Cost That Has Already

question 116

Multiple Choice

When economists refer to a production cost that has already been committed and cannot be recovered, they use the term

• A)implicit cost.
• B)explicit cost.
• C)variable cost.
• D)sunk cost.

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Definitions:

Research Project

A systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Binding Authority

Refers to the legal precedent or statutes that courts are obligated to follow.

Persuasive Authority

A legal authority, or source of law, that a court may look to for guidance but on which it need not rely in making its decision. Persuasive authorities include cases from other jurisdictions, discussions in legal periodicals, and so forth.

Negligence Action

A legal claim filed by someone who was harmed because of another party's failure to act with reasonable care.