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:

Provinces

Administrative divisions within a country, with their own local government, responsible for certain aspects of local administration and governance.

Assault

An act that purposely puts another person in apprehension of imminent harmful or offensive contact.

Battery

An intentional unconsented physical contact or harm caused by one person to another.

Vicarious Liability

Legal responsibility assigned to one party for the actions of another, typically an employer for the actions of an employee.