Costs incurred in the past that cannot be recovered are called:

Question

Accepted Answer

A. Sunk costs

1. Some money spent can never be got back whatever you now decide.
2. Sunk costs are costs that were incurred in the past and cannot be recovered.
3. The budget constraint framework assumes they should not affect the current decision.
4. Marginal cost concerns the next unit rather than money already spent.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 2 'Choice in a World of Scarcity', sections 2.1-2.3_

Answer

Marginal costs

Answer

Fixed costs

Answer

Average costs

Costs incurred in the past that cannot be recovered are called:

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