A Sunk Cost Is One That

question 304

Multiple Choice

A sunk cost is one that

• A)changes as the level of output changes in the short run.
• B)was paid in the past and will not change regardless of the present decision.
• C)should determine the rational course of action in the future.
• D)has the most impact on profit-making decisions.

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Definitions:

Highly Profitable

Describes businesses, operations, or activities that generate significant financial returns or gains.

Poor And Powerless

Individuals or groups lacking material wealth and the ability to influence or exert control over their circumstances or environment.

Punished Severely

Subject to harsh or strict penalties or consequences, often in response to a violation of law or rules.

Disreputable

Having a bad reputation, not respected or trusted by most people.