Sunk costs
Multiplied by fixed costs
Costs that change with the level of production
Defined as the change in total cost resulting from the production of an additional unit of output
Answer is Wrong!
Answer is Right!
The correct answer is C. Variable costs are costs that change with the level of production. For example, the cost of raw materials used to produce a product is a variable cost, because it will increase as more products are produced.
Option A is incorrect, because sunk costs are costs that have already been incurred and cannot be recovered. For example, the cost of purchasing a factory is a sunk cost, because it cannot be recovered even if the factory is no longer used.
Option B is incorrect, because
74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube