Sunk Costs Should Be Ignored in Decision Making Because They

question 54

Multiple Choice

Sunk costs should be ignored in decision making because they

• A)increase the cost of the transaction
• B)lead to an increase in the opportunity cost of any decision
• C)have already been paid
• D)often exceed marginal and average costs
• E)are usually negligible when compared with the explicit costs of decisions

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Definitions:

Study Participation

The involvement of individuals as subjects in research to gather information and data for the purpose of advancing knowledge.

Bureaucracies

Administrative systems organized into a hierarchy of departments and offices, operating under a set of rules and regulations to ensure consistency and impartiality.

Behavior Patterns

Recurrent ways of acting or responding that are characteristic of an individual or group.

Warrior

symbolizes a person who shows great vigor, courage, or aggressiveness, especially in the face of adversity or in the pursuit of a cause.