Money that a firm has already spent, or committed to spend regardless of whether a project is taken, is called a(n)
A: fixed cost.
B: opportunity cost.
C: sunk cost.
D: incremental cost.
A: fixed cost.
B: opportunity cost.
C: sunk cost.
D: incremental cost.
举一反三
- Money that the firm has already spent or is committed to spend regardless of whether a project is taken is called a(n) A: sunk cost. B: opportunity cost. C: erosion cost. D: fixed cost.
- In short run the shutdown point is that point at which A: price equals marginal cost. B: average fixed cost equals marginal cost. C: average variable cost equals marginal cost. D: average total cost equals marginal cost.
- Money that has been or will be paid regardless of the decision whether or not to proceed with the project is: A: cannibalization. B: considered as part of the initial investment in the project. C: an opportunity cost. D: a sunk cost.
- Opportunity cost of an action is A: the best choice that can be made. B: the money cost. C: the absolute cost. D: the comparative cost. E: the highest-valued alternative forgone.
- After constructing a new factory, the cost of building the factory is a A: past cost. B: sunk cost. C: variable cost. D: None of the above answers are correct.