A Cost That Cannot Be Avoided or Changed Because It

question 58

Multiple Choice

A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n) :

• A) Uncontrollable cost.
• B) Incremental cost.
• C) Opportunity cost.
• D) Out-of-pocket cost.
• E) Sunk cost.

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Definitions:

Price Rises

An increase in the cost of goods or services, often due to factors such as inflation, increased production costs, or higher demand.

Existing Producers

Companies or individuals that are currently producing and selling goods or services within a market.

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a good or service and the actual amount they end up paying.

Price Falls

Situations where the market prices of goods or services decrease over time.