Which of the Following Will Always Be Considered in Special

question 28

Multiple Choice

Which of the following will always be considered in special order decisions?

• A) Unavoidable costs
• B) Fixed costs
• C) Sunk costs
• D) Excess capacity

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Definitions:

Edgeworth Box Diagram

A graphical representation used in economics to show various distributions of resources and to demonstrate the efficiency of markets.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, assuming all resources are fully and efficiently utilized.

Input Price Ratio

The ratio of the prices of the inputs used in the production of goods or services.

Absolute Advantage

A condition in which a country, individual, or company can produce a good or service at a lower cost per unit than competitors can.