A(n)
cost arises from a past decision, cannot be avoided or changed, and is irrelevant to current and future decisions.

Question

A(n) 
 cost arises from a past decision, cannot be avoided or changed, and is irrelevant to current and future decisions.

BlackTom AI · Accepted Answer

The prompt presents a question about a type of cost and its characteristics, specifically describing a cost that arises from a past decision, cannot be avoided or changed, and is irrelevant to current and future decisions.

However, there are no answer options provided to evaluate. Without the list of alternatives, we cannot compare and contrast each option's validity.

To ground the discussion, the described concept matches the economist's and decision-theory term sunk cost: costs that have already been incurred and cannot be recovered, and thus should not influence ongoing or future choices. The key reasoning behind labeling something a sunk cost is that it cannot be altered by any future action, and rational decision-making should be based on marginal costs and benefits going forward, not on past expenditures.

If an option were present, we would assess it against these criteria:
- Does the option describe a past, unrecoverable cost? If yes, it aligns with sunk cost.
- Does the option claim the cost should influence future decisions because it’s already spent? If yes, that would be incorrect reasoning.
- Does the option reflect irrelevance to current/future decision-making despite being a historical expenditure? If yes, that supports the sunk-cost concept.

In summary, the correct concept here is sunk cost, defined as a past cost that cannot be avoided or changed and should be ignored in future decision-making. If you provide the answer choices, I can map each one to these criteria and explain why the correct one corresponds to sunk cost while others do not.

A(n) cost arises from a past decision, cannot be avoided or changed, and is irrelevant to current and future decisions.

View Explanation

Log in for full answers

Similar Questions

What is a sunk cost?

Retrospective (past) costs that have already been incurred and cannot be recovered.

Retrospective (past) costs that have already been incurred and cannot be recovered.

After purchasing a reusable water bottle from your local convenience store for $10.00, you can always refill your bottle at the store’s water station for $1.00. What is the sunk cost in this scenario?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler