How Are Sunk Costs and Fixed Costs Related

question 42

Multiple Choice

How are sunk costs and fixed costs related?

• A)They are not related in any way.
• B)Sunk costs cannot be recovered and fixed costs can be avoided by shutting down.
• C)In the short run they are equal to each other.
• D)In the long run they are equal to each other.

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Definitions:

Neuroendocrine Cells

Neurons that produce neurohormones.

Neurohormones

Hormones produced by neuroendocrine cells; transported down axons and released into interstitial fluid; common in invertebrates; in vertebrates, the hypothalamus produces neurohormones.

Interstitial Fluid

A fluid that fills the spaces between cells in tissues, providing nutrients and removing waste from cells.

Hypothalamus

A region of the brain responsible for hormone production and regulation of body temperature, hunger, moods, and sleep.