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.

---

Definitions:

Addictive Substances

Substances that can lead to addiction, characterized by a compulsive need to use despite harmful consequences.

Biologically Related

Being biologically related means sharing genetic material with another individual, typically through blood relations such as parent-child or siblings.

Alcoholic

A person who suffers from alcoholism, a chronic disorder characterized by the compulsive and uncontrolled consumption of alcohol.

Harm Reduction

A set of practical strategies and ideas aimed at reducing negative consequences associated with drug use and other risky behaviors.