Sunk Costs

question 66

Multiple Choice

Sunk costs

• A) Can be ignored because they have no effect on marginal costs
• B) Should be taken into consideration when choosing the best level of an activity
• C) Should not be ignored because they lead to higher marginal costs
• D) Can be ignored because they don't have to be paid by the decision maker

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Definitions:

Continent

A large continuous mass of land distinguished by geographers as one of the major landmasses on Earth's surface.

Country

A recognized political entity with its own government, territory, and population.

Referent

The actual object, event, or condition that a word or phrase denotes or stands for.

Vehicle

A means of transport, such as a car, bicycle, or airplane, used for carrying people or goods.