A sunk cost is a.An opportunity costb.A past cost that cannot be recovered.c.The cost for drilling certain types of wells, such as a well for waterd.A cost that is highly relevant for decision-making. One problem with measuring a durable good’s cost is If a firm buys a specialized metal stamping machine that will last 4 years for $125,000 and cannot resell it, the opportunity cost is Sue is taking an accounting job she was offered that pays $67,000 per year. She also had two other offers, a sales job paying $71,000 per year and a marketing job paying $65,000 per year. What is Sue’s opportunity cost of taking the accounting job? The Nifty Gum Co. has purchased a large parcel of land for $1 million. The company recently discovered that the land is contaminated and is worthless to all possible buyers. The opportunity cost of the land is a.$1 millionb.Some amount greater than $0 but less than $1 million.c.$0d.Equal to the cost of the factory that was planned to be built there. An old friend takes you out to dinner and pays for your meal. Which of the following best represents your opportunity cost? If a firm buys a building so as to have office space for its workers, the monthly opportunity cost of the building is best measured as

One problem with measuring a durable good’s cost is Economic costs of an input include a.Only explicit costsb.Only implicit costsc.Both implicit and explicit costs