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Unformatted text preview: ace. The soil is contaminated and consequently it is currently unsuitable for
housing or recreation. A local transportation firm has offered to lease the land for
container storage for $100,000 per year. A local construction firm has offered to lease the
land for equipment storage for $75,000 per year. The cost to the city of leasing the land to
the transportation firm
A. is zero because the land is contaminated.
B. is at least $75,000 per year.
C. depends on the cost of remediating the soil.
D. Both B and C.
11. Sunk costs
A. are costs that cannot be recovered once an action is taken even if that action is not
B. are irrelevant to whether or not an action should be completed.
C. are not an opportunity cost associated with completion of the action
D. All of the above. 7 12. The continuation payoff for a partially completed action is
A. always lower than the net benefit originally expected for that action.
B. the net benefit of continuing that action.
C. independent of costs already incurred on that actio...
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This document was uploaded on 03/03/2014.
- Spring '14