A Sunk Cost Is One That

question 304

Multiple Choice

A sunk cost is one that

• A)changes as the level of output changes in the short run.
• B)was paid in the past and will not change regardless of the present decision.
• C)should determine the rational course of action in the future.
• D)has the most impact on profit-making decisions.

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Definitions:

Discrete Categories

Distinct and separate groups or classifications without overlap.

Reduction

The process of making something smaller or less in amount, size, or importance.

Emotional Outbursts

Sudden, intense expressions of emotion that may not be appropriate to the situation.

Borderline Personality

A mental health disorder characterized by pervasive instability in moods, behavior, self-image, and functioning, often leading to impulsivity and troubled relationships.