Which of these types of costs can be ignored when an individual or a firm is making decisions?

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. Therefore, they should be ignored when making decisions since they cannot be changed or influenced by the decision. Focusing on sunk costs may lead to irrational decision-making, so they should be disregarded. Marginal costs, variable costs, and information costs are all relevant costs that should be considered when making decisions.

Which of These Types of Costs Can Be Ignored When