What Is a Sunk Cost

question 14

Multiple Choice

What is a sunk cost?

• A)A cost that can be avoided if certain choices are made
• B)A cost that always varies with the output of a factory
• C)The average cost of operating a plant
• D)The "lower envelope" of short-run average cost functions
• E)A cost incurred no matter what the decision is and cannot be avoided

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Definitions:

Cognitive

Pertaining to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Psychological

Pertaining to the mind or mental processes, encompassing emotions, thoughts, and behaviors.

Fovea

An area near the center of the retina that is dense with cones and where vision is consequently most acute.

Cones

Cone-shaped photoreceptors that transmit sensations of color.