Sunk costs are irrelevant to economic decisions because:
A)they are merely opportunity costs rather than monetary expenditures.
B)they do not appear on financial statements.
C)they represent no opportunity for choice.
D)they affect a firm's net revenue.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, making them irrelevant for future decision-making because they do not present any future opportunity for choice or alteration.

Sunk Costs Are Irrelevant to Economic Decisions Because