Assertion (A): Sunk costs are not relevant in economic decisions. Reason (R): The opportunity cost of such resources is zero. Codes:

CA Foundation · Business Economics · MTP · January 2025
Assertion (A): Sunk costs are not relevant in economic decisions. Reason (R): The opportunity cost of such resources is zero. Codes:
(A) A. Both A and R are true, and R is the correct explanation of A
(B) B. Both A and R are true, but R is not the correct explanation of A
(C) C. A is true but R is false
(D) D. A is false but R is true

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Both A and R are true, but R is not the correct explanation of A

Topics: Nature & Scope of Business Economics

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