Question
For the short run shutdown decision, which of the following cost is treated as sunk cost?
Answer: Option A
:
A
For the short run shutdown decision, the fixed costs are treated as sunk costs because they must be paid regardless of whether output is being produced or not.
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:
A
For the short run shutdown decision, the fixed costs are treated as sunk costs because they must be paid regardless of whether output is being produced or not.
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