In a Special Sales Order Decision,incremental Fixed Costs Which Would

question 118

Multiple Choice

In a special sales order decision,incremental fixed costs which would be incurred because of an additional purchase of equipment would be considered to be:

• A) irrelevant to the decision.
• B) opportunity costs.
• C) sunk costs.
• D) relevant to the decision.

Distinguish between the effects of technological advances and resource costs on supply.

Recognize the impact of natural disasters on supply and demand.

Explain the concept of opportunity cost and its importance in economic decision-making.

Describe how changes in supply and demand affect market equilibrium and producer surplus.