Mrs. Wallace and Mrs. Jackson both signed up for 6 months (each incurred a $200 total payment required in advance, and nonrefundable) at the local workout club. Wallace enjoyed all 6 months
Jackson dropped out after three months due to other unexpected commitments. Which of the following is true? A) Wallace's sunk cost was zero.
B) Jackson's sunk cost was $100.
C) Jackson's sunk cost was $200, and so was Wallace's.
D) Wallace's sunk cost was $100.
E) None of the above.
C
You might also like to view...
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this is an unregulated monopoly firm, the price and output which would maximize profits are:
A. price = $8; output = 25. B. price = $10; output = 25. C. price = $5; output = 40. D. price = $4; output = 25.
When the market is in equilibrium:
A. unexploited opportunities exist for both individuals and society. B. unexploited opportunities exist for individuals but not for society. C. no unexploited opportunities exist for individuals. D. no unexploited opportunities exist for society.