A Sunk Cost Is A

question 55

Multiple Choice

A sunk cost is a:

• A) fixed cost.
• B) potential benefit forgone.
• C) cost that cannot be changed and is therefore not relevant to decision making.
• D) cost which may be saved by not adopting an alternative.

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Definitions:

Mental Ability

The capacity to perform cognitive tasks, solve problems, and learn from experiences.

Practical Intelligence

The aspect of intelligence relating to the ability to solve everyday problems through adaptive or creative reasoning in real-world environments.

Knowledge

Facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

New Situation

An unfamiliar or novel set of circumstances that requires adaptation and may trigger learning or behavioral changes.