Which of the following is classified as a sunk cost?
a. Cost of the next best alternative
b. Additional cost of producing an additional unit
c. Research costs to determine the implementation of a technology
d. Total cost of producing a product
Question 2
The ways to address agency costs include
a. gathering information about the agent's characteristics before hiring
b. gathering information about the agent's actions once hired
c. incentivizing agents to work on behalf of principals
d. all of the above
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