You Have Invested About $100,000 in a New (Hopefully)trendy Restaurant

question 21

Multiple Choice

You have invested about $100,000 in a new (hopefully) trendy restaurant in an urban location. These costs have gone to purchase the restaurant, prepay insurance for the following year, and purchase supplies for the restaurant. It will cost you an additional $10,000 per year to hire each waiter and waitress. (They earn tips which they get to keep.) Which of the following statements is most accurate?

• A)The $100,000 sum represents sunk costs, whereas the costs for waiters and waitresses is not sunk, but all of these costs would be considered accounting costs, but do not include all of the possible economic costs of operating the business.
• B)The $100,000 sum represents sunk costs, whereas the costs for waiters and waitresses is not sunk, but all of these costs would be considered accounting costs, and also include all of the possible economic costs of operating the business
• C)The $100,000 sum represents sunk costs and the costs for waiters and waitresses are sunk as well.
• D)The $100,000 sum represents sunk costs and all of the possible accounting costs as well.

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Definitions:

Levinson

A psychologist known for his theory on adult development, outlining stages and transitions across the lifespan, including early adult transition and mid-life crisis.

Age-Denying Behaviors

Actions undertaken to resist or minimize the appearance or effects of aging.

Developmental Task

A milestone or an achievement that an individual is expected to accomplish within a specific stage of development as part of the growth process.

Robert Havighurst

An American psychologist and educator known for his research on human development and aging, and for proposing the theory of developmental tasks.