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An electronics company wants to compare the quality of their cell phones to the cell phones from three competitors. They sample 10 phones from each company and count the number of defects for each phone. If ANOVA is used to compare the average number of defects, the treatments would be defined as:
Sunk Cost
An expense that is irreversible and non-recoverable, hence it should not affect upcoming corporate choices.
Incremental Cost
The additional cost incurred to produce one more unit of a good or service.
Opportunity Cost
The potential benefit that is missed out on when choosing one alternative over another.
Opportunity Costs
The cost of an alternative that must be foregone to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.
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