A Consumer's Budget Constraint Is

question 50

Multiple Choice

A consumer's budget constraint is:

• A) a positively-sloped line.
• B) a negatively-sloped line.
• C) convex.
• D) a vertical line at the level of the consumer's income.

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Definitions:

Significant Sunk Costs

Expenses that have already been incurred and cannot be recovered or changed.

Avoidable Cost

Costs that can be eliminated if a certain decision is made, not incurred if a particular activity is avoided.

Sunk Cost

A sunk cost is an expense that has already been incurred and cannot be recovered, often considered irrelevant for future business decisions.

Opportunity Cost

The cost of the next best alternative foregone as a result of making a decision.