A Corporation Has Been Steadily Losing Money on One of Its

question 41

Multiple Choice

A corporation has been steadily losing money on one of its product lines, plastic flamingo lawn ornaments. The firm produces plastic flamingos in a factory that cost $20 million to build 10 years ago. The firm is now considering an offer to buy that factory for $15 million. Which of the following statements about the decision to sell or not to sell is correct?

• A)The firm should turn down the purchase offer because the factory cost more than $15 million to build.
• B)The $20 million spent on the factory is a sunk cost; that cost should not affect the decision.
• C)The $20 million spent on the factory is an implicit cost, which should be included in the decision.
• D)The firm should sell the factory only if it can reduce its costs elsewhere by $5 million.

Understand the use of network utilities to troubleshoot connectivity issues.

Identify command lines to verify computer hardware and software configurations.

Recognize maintenance procedures for improving computer performance.

Configure browser options for security purposes.

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Definitions:

Random Assignment

A method in experimental design where participants are allocated to different groups on a random basis to reduce bias and increase the validity of the results.

Construct Validity

The extent to which a test or instrument measures the theoretical construct it's intended to measure.

Experimenter Bias

The possibility that the experimenter’s knowledge of the condition a particular participant is in could affect her behavior toward the participant and thereby introduce a confounding variable to the independent variable manipulation.

Conceptual Replications

A method in scientific research where a study is conducted again with the same hypotheses but different methods or in different contexts to validate the original findings.