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:

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Taxes imposed on imported or, less commonly, exported goods to regulate trade and revenue.

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A monetary system where a country's currency or paper money has a value directly linked to gold, used historically to provide stability in currency value.

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A measurement of the appeal or popularity of an entertainment event or figure, based on ticket sales revenue.