Costs that are forever lost after they have been paid are: A. production costs B. fixed costs C....

Question:

Costs that are forever lost after they have been paid are:

A. production costs

B. fixed costs

C. sunk costs

D. variable costs

Cost:

Costs refer to the expenses incurred (and therefore the money spent) to deliver services or produce goods in the economy. Various costs include fixed costs, variable costs, private costs, and social costs. In order to make a profit, a company must sell its products at a higher price than the associated production costs.

Answer and Explanation: 1

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The correct answer is C. sunk costs. Sunk costs are defined as money that when spent cannot be recovered. Therefore, sunk costs are excluded from any...

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Sunk Costs: Definition & Examples

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Chapter 31 / Lesson 8
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Understand the sunk cost definition. Learn the meaning of sunk cost and sunk cost trap with the help of the sunk cost examples and sunk cost fallacy examples.


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