Which of the Following Costs Are Always Irrelevant in Decision

question 50

Multiple Choice

Which of the following costs are always irrelevant in decision making?

• A) avoidable costs
• B) sunk costs
• C) opportunity costs
• D) fixed costs

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Definitions:

Economic Performance

An assessment of how well an economy is functioning, often evaluated through indicators such as GDP growth rate, unemployment rates, and inflation.

Cost Differences

The discrepancies in the amount of money required to produce or obtain goods and services between different companies or regions.

Collusion

Collusion is an agreement between competitors to limit competition and manipulate market variables such as prices or output, often in order to increase profit margins at the expense of consumers.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded.