What is the purpose of the knot shown in the diagram? 
Definitions:
Sunk Costs
Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.
Dairy Farmer
A dairy farmer is an individual engaged in the management and care of cows for the production of milk and other dairy products.
Accounting Profits
The difference between total revenue and explicit costs of a business, calculated according to standard accounting practices.
Competitive Market
A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product or service for which all sellers offer essentially the same good or service.
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