A Company Is Considering a New Project That Will Cost

question 83

Multiple Choice

A company is considering a new project that will cost $19,000.This project would result in additional annual revenues of $6,000 for the next five years.The $19,000 cost is an example of a(n) :

• A) Sunk cost
• B) Fixed cost
• C) Incremental cost
• D) Uncontrollable cost
• E) Opportunity cost

---

Definitions:

Negative

In the context of economics, denotes a situation or indicator that reflects a decrease, deficit, or detrimental condition.

Inelastic Supply

A situation where the quantity supplied of a good or service is not significantly influenced by changes in price.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good or service greatly changes in response to changes in price.