If there is no legal way to keep competitors out of the market,these costs must be viewed as sunk costs that do not affect decision making after the product is introduced into the market.Identify the type of cost being discussed.

Question

Quizplus · Accepted Answer

Development costs are considered sunk costs in this context because they are incurred regardless of future actions and cannot be recovered once a product is introduced into the market. These costs do not influence future decision-making since they cannot be changed or avoided after the fact.

If There Is No Legal Way to Keep Competitors Out