Author Question: A manager invests 400,000 in a technology that should reduce the overall costs of production. The ... (Read 66 times)

SGallaher96 · **on:** Jul 1, 2018

A manager invests 400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from 2 to 1.85 . After the investment has been made, the 400,000 investment is
a. Considered sunk costs, not relevant in further decision making
b. Considered sunk costs, but still relevant in further decision making
c. Considered a loss
d. Considered a profit

Question 2

After firm A acquired firm B, it raised the prices for the goods produced by both firms. This can increase profits if those goods are
a. Substitutes
b. Complements
c. Not related
d. None of the above