When economists refer to a production cost that has already been committed and cannot be recovered, they use the term
A)implicit cost.
B)explicit cost.
C)variable cost.
D)sunk cost.

Question

Quizplus · Accepted Answer

A sunk cost refers to a production cost that has already been incurred and cannot be recovered. It's considered a historical cost and shouldn't be considered when making decisions on whether to continue or discontinue a project, as it's already spent and cannot be retrieved.

When Economists Refer to a Production Cost That Has Already