A Firm Built an Inventory of 16-Bit Chips for $50,000

question 45

Multiple Choice

A firm built an inventory of 16-bit chips for $50,000 last year.However,the introduction of 32-bit chips lowers the market price for 16-bit chips and the inventory can only be sold for $40,000 now.What is the sunk cost?

• A)$50,000
• B)$40,000
• C)$10,000
• D)$90,000

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Definitions:

Mental Manipulation

The act of influencing or controlling someone's mind or thoughts, often for personal gain or to deceive.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, often known for its effects on mood and perception.

Cognitive-Developmental Theory

A theory proposed by Jean Piaget that outlines how children's ability to think and understand develops through various stages.

Formal Operations

The fourth stage in Piaget’s cognitive-developmental theory, characterized by the capacity for flexible, reversible operations concerning abstract ideas and concepts, such as symbols, statements, and theories.