Which of the Following Is a Sunk Cost

question 6

Multiple Choice

Which of the following is a sunk cost?

• A)Operating costs for a new vehicle
• B)Trade in value of old vehicle
• C)Purchase price of new vehicle
• D)Purchase price of vehicle to be traded in

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Definitions:

External Benefits

Positive effects of a product or service on individuals or entities who are not directly involved in the transaction or production of the product or service.

External Benefit

A positive effect or advantage that results from a product or service's use, affecting individuals or entities who are not directly involved in the transaction.

Positive Externality

A beneficial effect experienced by a third party or the society as a whole, resulting from an economic transaction.

Market

The environment in which buyers and sellers interact to exchange goods, services, and information, setting prices through supply and demand.