Sunk costs: a. should be considered, but only when marginal cost is less than marginal benefit. b. should be considered only when there is no information about marginal cost and marginal benefit. c. are essential parts of economic decisions. d. are irrelevant to economic decisions.

 d. are irrelevant to economic decisions.

Explanation:

Sunk cost is cost that has been incurred and cannot be recovered. They are irrelevant and should not be considered when making economic decisions.

For example, if it costs $1500 to build a store and $500 has already been spent. $500 is the sunk cost and it would not be considered in the decision to continue or abandon the project.

I hope my answer helps you

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer; offer in store wine and beer samples;