Author Question: Which of the following statements demonstrates an understanding of the importance of sunk costs for ... (Read 108 times)

laurencescou

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Which of the following statements demonstrates an understanding of the importance of sunk costs for decision making?
 
  I. Even though I hate my MBA classes, I can't quit because I've spent so much money on tuition.
  II. To break into the market for soap our firm needs to spend 10M on creating an image that is unique to our new product. When deciding whether to develop the new soap, we need to take this marketing cost into account.
  A) I only
  B) II only
  C) Both I and II
  D) Neither I nor II

Question 2

Refer to Table 5.4. If at Job B the 20 outcome occurs with probability .2, and the 50 outcome occurs with probability .8, then the standard deviation of payoffs at Job B is nearest which value?
 
  A) 10
  B) 12
  C) 20
  D) 35
  E) 44



quynhmickitran

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Answer to Question 1

B

Answer to Question 2

B



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