A sunk cost has no effect on supply because it

A) applies to all suppliers.
B) can be passed on to consumers.
C) cannot be avoided by not supplying.
D) cannot be passed on to consumers.
E) did not have to be incurred in order for the good to be supplied.

C

Economics

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If absolute property rights to an endangered resource are granted to someone who inefficiently manages the resource, explain what the Coase theorem predicts will happen to that resource

What will be an ideal response?

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Marginal utility theory predicts that a rise in the price of a banana results in

A) the demand curve for bananas shifting rightward. B) the demand curve for bananas shifting leftward. C) a movement upward along the demand curve for bananas. D) a movement downward along the demand curve for bananas.

Economics