Sunk costs:

A) can only be measured in monetary terms.
B) are opportunity costs.
C) should influence a person's choice if that person is a marginal decision maker.
D) lower the efficiency of production.
E) should not be considered when making economic decisions.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.