Many investments are irreversible because they involve:
A) labor costs.
B) international costs.
C) construction costs.
D) sunk costs.

Question

Quizplus · Accepted Answer

Irreversible investments involve sunk costs. Sunk costs are costs that have been incurred and cannot be recovered. Once an irreversible investment is made, the investor cannot recover the capital invested. Labor costs, international costs, and construction costs can be recovered or reversed to some extent.

Many Investments Are Irreversible Because They Involve