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NEW QUESTION: 1

A. Option C
B. Option B
C. Option A
D. Option D
Answer: C,D

NEW QUESTION: 2
Click the Exhibit button.

Referring to the exhibit, which path will traffic from R6 take to reach R1?
A. R6 > R4 > R2 > R3 > R1
B. R6 > R4 > R2 > R1
C. R6 > R5 > R3 > R1
D. R6 > R5 > R3 > R2 > R1
Answer: B

NEW QUESTION: 3
Clay Industries, a large industrial firm, has begun the development of an underwater drilling system which will greatly increase the efficiency of deep-sea petroleum extraction. In their analysis of the project's cash- flow potential, the corporate finance division of Clay Industries does not factor in the initial R&D costs for the quarter, rather examines only the initial cash outlay and expected cash inflows specific to the underwater drilling system. The R&D costs involved for this quarter could best be described as which of the following?
A. Externality
B. Opportunity cost
C. None of these answers
D. Incremental cost
E. Sunk cost
F. Implicit cost
Answer: E
Explanation:
Explanation/Reference:
Explanation:
In this example, the R&D expenditures are an example of a sunk cost. In an analysis of any project, sunk costs are not included. This is because sunk costs represent outlays which have already occurred or have already been committed. These costs are not incremental, and hence are not affected by the decision under consideration.