Why is a sunk cost irrelevant to a firm's current decisions?
What will be an ideal response?
Sunk cost is irrelevant because it cannot be changed by any decision. It is already incurred and so must be paid. The only costs that concern the firm are costs that the firm can change with its current decisions.
Economics
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Because it is the only firm operating in a particular market, a monopolist is guaranteed to earn an economic profit
Indicate whether the statement is true or false
Economics
Which of the following is NOT an expected benefit of reducing nontariff barriers to trade?
A) Fewer firms to compete with B) Lower prices for many goods C) Increase in the volume of exports and imports D) Improved overall economic welfare
Economics