Which of the following statement(s) describe sunk cost? 1) All of the answers are correct 2) It changes with output level 3) For a firm to produce some output, it has to receive a price for its product that can at least cover its fixed cost 4) It is the economic loss of the firm if it shuts down production
Which of the following statement(s) describe sunk cost? 1) All of the answers are correct 2) It changes with output level 3) For a firm to produce some output, it has to receive a price for its product that can at least cover its fixed cost 4) It is the economic loss of the firm if it shuts down production
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 21P
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![Which of the following statement(s) describe sunk cost?
1)
All of the answers are correct
2)
It changes with output level
3)
For a firm to produce some output, it has to receive a price for its product that can at
least cover its fixed cost
4)
It is the economic loss of the firm if it shuts down production](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27033908-cac7-42bd-b20e-63b8c01294f1%2F1257e740-053a-471a-9702-246d8be0beb4%2F2awdjk_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following statement(s) describe sunk cost?
1)
All of the answers are correct
2)
It changes with output level
3)
For a firm to produce some output, it has to receive a price for its product that can at
least cover its fixed cost
4)
It is the economic loss of the firm if it shuts down production
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