A Company Is Planning to Replace an Old Machine with a New

question 8

Multiple Choice

A company is planning to replace an old machine with a new one.Which of the following is a sunk cost?

• A) cost of the new machine
• B) sales price of the old machine
• C) future maintenance costs of the old machine
• D) original cost of the old machine

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Definitions:

Genetic Predisposition

The inherent susceptibility to certain conditions or characteristics based on one's genetic makeup.

Arouses Us

Incites feelings, often of interest or excitement, in a group or individual.

Informational Social Influence

The change in opinions or behavior that occurs when an individual conforms to what they believe is the correct way to act, based on information from others.

Normative Social Influence

The influence of other people that leads us to conform in order to be liked and accepted by them.