Mark Is an Engineer Who Has Designed a Telecommunications Device

question 72

Multiple Choice

Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.Mark purchased a machine two years ago to make experimental boards. The machine will be used to manufacture the new board. The cost of this machine is:

• A) an opportunity cost
• B) a sunk cost
• C) a differential cost
• D) a period cost

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Definitions:

Observational Research

A research method involving the systematic observation and recording of behaviors and phenomena in their natural environment, without intervention by the researcher.

Environmental Impact

The effect that human activities and natural phenomena have on the environment, including ecosystems, biodiversity, and human health.

Research Methods

Various strategies, techniques, and tools used for investigating hypotheses and acquiring new knowledge in scientific or academic studies.

Survey Research

A method of collecting data from a predefined group of respondents to gain information and insights on various topics of interest through structured questionnaires or interviews.