Ef.16. Question 10: Sunk Costs. (c) What is the most that you should pay to completedevelopment?OA)we will use the rule that as long as the marginal benefit is greater than orequal to the marginal cost, continue with the project/activity.B)even if that means we only make a penny or just break even, after all, themarginal costs will include any and all opportunity costs.C)we expect news sales of $3 millions, that's the sales team's best estimate, ofcourse nothing can be one hundred percent predictable, but we'll go with it.D)all of the above is true for this admittedly simplified problem, bottom line:we would spend up to $3 million to get $3 million in profit.

Sunk cost: Sunk costs are one type of accounting cost that does not involve opportunity costs. These…

Question 10: Sunk Costs. (c) What is the most that you should pay to complete development? OA) we will use the rule that as long as the marginal benefit is greater than or equal to the marginal cost, continue with the project/activity. even if that means we only make a penny or just break even, after all, the B) marginal costs will include any and all opportunity costs. O c) we expect news sales of $3 millions, that's the sales team's best estimate, of course nothing can be one hundred percent predictable, but we'll go with it. D) all of the above is true for this admittedly simplified problem, bottom line: we would spend up to $3 million to get $3 million in profit.

Question 10: Sunk Costs. (c) What is the most that you should pay to complete development? OA) we will use the rule that as long as the marginal benefit is greater than or equal to the marginal cost, continue with the project/activity. even if that means we only make a penny or just break even, after all, the B) marginal costs will include any and all opportunity costs. O c) we expect news sales of $3 millions, that's the sales team's best estimate, of course nothing can be one hundred percent predictable, but we'll go with it. D) all of the above is true for this admittedly simplified problem, bottom line: we would spend up to $3 million to get $3 million in profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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