Many investments involve _____,which are a characteristic of irreversible investments.
A) fixed costs
B) opportunity costs
C) operating costs
D) sunk costs

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, even if the investment is abandoned. This is a common characteristic of irreversible investments, which means that once the investment is made, it cannot easily be reversed or undone. Fixed costs, operating costs, and opportunity costs may also be associated with investments, but they do not necessarily indicate that the investment is irreversible.

Many Investments Involve _____,Which Are a Characteristic of Irreversible Investments