3. Which of the following is NOT an example of a sunk cost?a) Purchase of a hamburger after starting to eat itb) Purchase of a movie ticket thirty minutes after the film has startedc) Purchase of an item on Amazon...fifty days after deliveryd) Purchase of a gallon of milk after you start drinking ite) Purchase of a new TV set with the receipt 4. Suppose we have another firm known as Sepanyan Corporation which makes a product known asYeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC?a) $25.00b) $67.50c) $100.25d) $200e) Not enough information 5. Which of the following is true concerning a competitive firm?a) It will produce even when its economic profit is zerob) It prefers not to maximize profitsc)t is the only firm in the marketd) Its quantity choice will affect the market pricee) People’s PED for the firm’s specific product is inelastic

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Asked Nov 18, 2019
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3. Which of the following is NOT an example of a sunk cost?
a) Purchase of a hamburger after starting to eat it
b) Purchase of a movie ticket thirty minutes after the film has started
c) Purchase of an item on Amazon...fifty days after delivery
d) Purchase of a gallon of milk after you start drinking it
e) Purchase of a new TV set with the receipt
 
4. Suppose we have another firm known as Sepanyan Corporation which makes a product known as
Yeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC?
a) $25.00
b) $67.50
c) $100.25
d) $200
e) Not enough information
 
5. Which of the following is true concerning a competitive firm?
a) It will produce even when its economic profit is zero
b) It prefers not to maximize profits
c)t is the only firm in the market
d) Its quantity choice will affect the market price
e) People’s PED for the firm’s specific product is inelastic
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Expert Answer

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As per our Honor code, we can solve only 1st question. If you want the answer for rest of the questions, please post the question separately and one of our experts will help you.

Step 2

Sunk cost is the cost or the money which has been spent and cannot be recovered.

If a person has already started eating burger or consuming milk, he will have to pay for it whether he wants to consume whole burger and milk or not.

Similar is the case for purchasing a ticket of a movie which has already started.

If a good is purchased, the maximum time to return the good is 45 days....

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