Costs that have already been incurred, and which cannot be recovered, are known as
A)short-run fixed costs.
B)implicit costs.
C)unavoidable costs.
D)sunk costs.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. Short-run fixed costs refer to costs that do not vary with a firm's level of output in the short run, implicit costs refer to opportunity costs associated with using resources owned by the firm, and unavoidable costs refer to costs that cannot be avoided even if a firm shuts down production.

Costs That Have Already Been Incurred, and Which Cannot Be