Which of the Statements Below Is Correct About Sunk Costs

question 89

Multiple Choice

Which of the statements below is correct about sunk costs?

• A) Sunk costs are always relevant to decision making.
• B) Sunk costs are not relevant to decision making.
• C) Sunk costs are relevant to long-run decisions but not to short-run decisions.
• D) Sunk costs acts as a substitute for opportunity costs.

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Definitions:

Child Care Programs

Structured environments provided for children that may include educational, recreational, and social activities while their guardians are occupied.

Intellectual Benefits

Advantages gained through engaging in activities that stimulate the mind, such as improved problem-solving skills and increased knowledge.

Social Benefits

Advantages or positive effects that accrue to individuals or communities from social policies, relationships, or actions, enhancing well-being and quality of life.

Daily Average

The daily average refers to the mean value of a certain variable (such as temperature, traffic volume, or sales figures) calculated over a specified period of one day.