Which of the Following Is an Example of a Sunk

question 220

Multiple Choice

Which of the following is an example of a sunk cost, as it relates to a firm?

• A)an expenditure on raw materials used in the production process
• B)an expenditure on a nonrefundable, nontransferable airline ticket
• C)an expenditure to buy a delivery van
• D)an expenditure for a new factory

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Definitions:

Production Sector

The segment of the economy involved in the production of goods and services.

Consumers Spend

Consumers spend refers to the total amount of money spent by households in an economy on goods and services over a period.

Dark Pools

Private financial forums or exchanges for trading securities, not accessible by the investing public.

Broker-Dealer Organizations

Broker-dealer organizations are financial institutions that buy and sell securities for their own accounts and on behalf of their customers, and often provide investment advice and related services.