You Decide to Purchase a Car for $12,000

question 54

Multiple Choice

You decide to purchase a car for $12,000. Upon driving the car off of the lot, the resale value of the car falls to $9,000. After purchasing the car, the $12,000 purchase price represents a(n) :

• A)average cost.
• B)implicit cost.
• C)sunk cost.
• D)nonsunk cost.

---

Definitions:

Falsehood

A statement that is untrue, misleading, or inaccurate.

Agency Relationship

A legal connection between two parties where one, the agent, is authorized to act on behalf of the other, the principal, in dealings with third parties.

Pedestrian

An individual who travels on foot, especially in areas designated for walking.

Injuries

are damages or harm caused to the body, emotions, or mind of a person.