After constructing a new factory, the cost of building the ...

[kodithompson]

After constructing a new factory, the cost of building the factory is a
 
  A) past cost.
  B) sunk cost.
  C) variable cost.
  D) None of the above answers are correct.

Question 2

In the above figure, at point b on the demand curve, a price cut of one dollar will
 
  A) increase total revenue.
  B) decrease total revenue.
  C) leave total revenue unchanged.
  D) have an indeterminate effect on total revenue.

[IRincones]

Answer to Question 1

B

Answer to Question 2

A