Amos Is a Baker in Tucson

question 54

Multiple Choice

Amos is a baker in Tucson.Which of the following statements is correct?

• A)The wage needed to keep Amos in the bakery industry in Tucson in the long run is lower than the wage needed to keep him in the industry in the short run.
• B)The costs of entering the bakery industry in Tucson are sunk costs and therefore those costs shouldn't be a consideration in Amos's decision to stay in the industry.
• C)The wage needed to keep Amos in the bakery industry in Tucson in the short run is lower than the wage needed to keep him in the industry in the long run.
• D)The wage needed to keep Amos in the bakery industry in Tucson in the long run is not important -- only the short-run wages are relevant.
• E)The costs of entering the bakery industry in Tucson are sunk costs and therefore those costs should be considered in Amos's decision to stay in the industry.

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