Which Is the Best Example of a Sunk Cost of Production

question 99

Multiple Choice

Which is the best example of a sunk cost of production to a firm?

• A) Rent on the factory.
• B) Wages paid to production workers.
• C) Electricity charges.
• D) Cost of production materials.
• E) Transportation costs.

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Definitions:

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.

Conventional

Consisting with or based on norms, standards, or practices that are widely accepted and established.

Social Responsibility

The ethical framework suggesting that individuals or organizations should act in a way that benefits society at large.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating behavior of the marketplace.