Costs That Can Be Eliminated in Whole or in Part

question 50

Multiple Choice

Costs that can be eliminated in whole or in part by choosing one alternative over another are:

• A) Sunk costs
• B) Variable costs
• C) Differential costs
• D) Opportunity costs

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Definitions:

Total Profit

The overall financial gain made by a business after all expenses have been subtracted from the total revenues.

Demand Elasticities

Measures the responsiveness of demand for a good or service to changes in its price, income levels, or other factors.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like demand, cost of service, or market competition.

Single-Price Monopoly

A market condition where a monopolist sets one price for all consumers of its product, without price discrimination.