If the Total Cost of Alternative a Is $600,000 and the Total

question 2

Multiple Choice

If the total cost of alternative A is $600,000 and the total cost of alternative B is $200,000, then $400,000 is termed the:

• A)opportunity cost.
• B)average cost.
• C)sunk cost.
• D)out-of-pocket cost.
• E)differential cost.