How Are Sunk Costs and Fixed Costs Related

question 42

Multiple Choice

How are sunk costs and fixed costs related?

• A)They are not related in any way.
• B)Sunk costs cannot be recovered and fixed costs can be avoided by shutting down.
• C)In the short run they are equal to each other.
• D)In the long run they are equal to each other.

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Definitions:

Seize The Day

A phrase encouraging individuals to make the most of the present moment without concern for the future, often associated with the Latin term "carpe diem."

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Unconscious psychological strategies employed to protect a person from anxiety-arising thoughts or feelings.

Subception

A psychological process by which an individual responds to stimuli without consciously perceiving them.

Self-Actualization

A state of personal growth in which people fulfill their true potential.