Which of the Following Statements Is CORRECT

question 293

Multiple Choice

Which of the following statements is CORRECT?

• A) A firm does not need to take into account its sunk cost when making current decisions.
• B) Long-run decisions are easily reversed.
• C) Short-run decisions are not easily reversed.
• D) In the long run, a firm can change its plant but not the quantity of its labor.

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Definitions:

Non-substitutability

A characteristic of a resource or skill that cannot be easily replaced or duplicated by another.

National Accounting

A system of economic accounts that provides a detailed statistical representation of a country's economic activities during a specific period.

Legislation

Legislation is the process through which laws are enacted by a governmental body.

Referent Power

A form of power that stems from being admired and respected, often used to influence others through appeal and attraction.