A Laid-Off Autoworker Does Not Immediately Seek Employment in a Rapidly

question 90

Multiple Choice

A laid-off autoworker does not immediately seek employment in a rapidly growing computer industry because:

• A) he is irrational,not considering the benefits of searching for a new job.
• B) changing a career is a costly decision.
• C) being unemployed is always the best decision for a person after a layoff.
• D) there are benefits to being rationally ignorant.

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Definitions:

Fixed Cost

A cost that remains constant in total regardless of changes in the level of activity, such as lease payments and managerial salaries.

Units Produced

The total number of units manufactured during a given period, indicating the level of production output.

Activity Base

A measure or quantity (such as machine hours, labor hours, or materials used) that is directly associated with the costs incurred by an activity or process.

Managerial Accountants

Professionals specializing in accounting who analyze financial information to inform strategic business decisions, focusing on the management of internal financial processes.