Choose the Statement That Is Incorrect

question 87

Multiple Choice

Choose the statement that is incorrect.

• A)Expenditure on a plant that has no resale value is a sunk cost.
• B)A sunk cost is irrelevant to a firm's current decisions.
• C)A cost that influences a firm's current decisions is the short-run cost of changing its labour inputs.
• D)A cost that influences a firm's current decisions is the long-run cost of changing its plant.
• E)The short run is a time frame in which a firm can change its plant.

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Definitions:

Cable TV

A system of delivering television programming to consumers via radio frequency (RF) signals transmitted through coaxial cables or digital light pulses through fiber-optic cables.

Perfectly Inelastic

A demand situation in which the quantity demanded does not change in response to a change in price.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare among entities in the economy.

Rational Choice Theory

An economic theory that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.