Question

Sunk costs: a help to determine the optimal quantity of an activity. b have no impact on economic profit. c can dramatically increase marginal costs. d are not considered in marginal analysis. e are the same as variable costs.

Answer 1

B

Step-by-step explanation:

Sunk cost is the which incurred in the past and has nothing to do with the economic profit. Because profit means in future what an owner gain and it does not have to deal with the past occurrence. The other options are not relevant and may be disregarded.

This has is of no consideration when decision is made about the future. It is just a lost money and cannot be recovered now.