A Firm Bought a Pizza Oven for $13,500 and If

question 62

Multiple Choice

A firm bought a pizza oven for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements is TRUE?

• A)The relevant cost of the oven when considering shutting down is $13,500.
• B)The relevant cost of the oven when considering shutting down is $9,500.
• C)The relevant cost of the oven when considering shutting down is $4,000.
• D)The cost of the oven does not matter when deciding whether or not to shut down.

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Definitions:

Criminal Defendants

Individuals who are accused of committing a crime and are facing charges in a court of law.

Public Officials

Individuals holding positions of authority in governmental organizations, tasked with upholding the law and serving the public interest.

Prosecuted

To bring legal action against an individual or organization, typically for criminal charges, in a court of law.

Public Defender

An attorney appointed by the court to represent defendants who cannot afford to hire private counsel, typically in criminal cases.