Which of the following statements are true and which are false? ..... Fill in the following table. The greatest potential for cost savings occurs in the operation phase of the life cycle True Optimal volume (demand) occurs when total costs equal total revenues False The demand for necessities is more inelastic than the demand for luxuries A nonrefundable cash outlay (e g., money spent on a passport) is an example of an opportunity cost. False Overhead costs normally include all costs that are not direct costs Most decisions are based on differences that are perceived to exist among alternatives

Which of the following statements are true and which are false? ..... Fill in the following table. The greatest potential for cost savings occurs in the operation phase of the life cycle True Optimal volume (demand) occurs when total costs equal total revenues False The demand for necessities is more inelastic than the demand for luxuries A nonrefundable cash outlay (e g., money spent on a passport) is an example of an opportunity cost. False Overhead costs normally include all costs that are not direct costs Most decisions are based on differences that are perceived to exist among alternatives

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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