When economists refer to a production cost that has already been committed and cannot be recovered,what term do they use

Question

Quizplus · Accepted Answer

The term used to refer to a production cost that has already been committed and cannot be recovered is "sunk cost." This cost is not considered in future decisions as it is already incurred and cannot be reversed. Option A refers to an opportunity cost, option B to a cost that involves a direct outlay of money, and option C to a cost that varies with changes in output.

When Economists Refer to a Production Cost That Has Already