A Corporation Has Been Steadily Losing Money on One of Its

question 97

Multiple Choice

A corporation has been steadily losing money on one of its product lines.The factory used to produce that brand cost $20 million to build.The firm now is considering an offer to buy that factory for $15 million.Which of the following statements about the decision to sell or not is correct?

• A)The firm should turn down the purchase offer because the factory cost more than $15 million to build.
• B)The $20 million spent on the factory is a sunk cost that should not affect the decision.
• C)The $20 million spent on the factory is an implicit cost that should be included in the decision.
• D)The firm should sell the factory only if it can reduce its costs elsewhere by $5 million.
• E)The firm's opportunity cost would be $35 million if it decides to sell the factory.

Distinguish between different types of plant tissues and their characteristics.

Identify and describe the components and function of plant vascular systems.

Understand the chemical composition and functional roles of key plant polymers and molecules.

Describe the growth patterns and lifecycle stages of plants.

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Definitions:

Positive Externality

A beneficial effect experienced by a third party as a result of an economic transaction or activity between others.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often a byproduct of production or consumption.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not reduce availability to others.

Total Damage

The cumulative impact or cost resulting from an event or series of events, often used in the context of natural disasters or accidents.