When conducting cost-benefit analysis, it is important to ignore previously incurred costs and previously received benefits

True, false, or uncertain? Any firm that is not covering fixed costs should shut down in the short run

Indicate whether the statement is true or false

A firm bought a pizza oven for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements is TRUE?

A) The relevant cost of the oven when considering shutting down is $13,500. B) The relevant cost of the oven when considering shutting down is $9,500. C) The relevant cost of the oven when considering shutting down is $4,000. D) The cost of the oven does not matter when deciding whether or not to shut down.