In the short run a manufacturing firm's production equipment is a sunk cost.

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A sunk cost is a cost that has already been incurred and cannot be recovered. In the short run, a manufacturing firm cannot easily adjust its production equipment, so it is considered a sunk cost. This means that the firm must continue to use and maintain the equipment regardless of its current cost or usefulness. However, in the long run, the firm may choose to replace or upgrade the equipment, making it a variable cost.

In the Short Run a Manufacturing Firm's Production Equipment Is