Choose the Statement That Is Incorrect

Multiple Choice

Choose the statement that is incorrect.

A) Expenditure on a plant that has no resale value is a sunk cost.
B) A sunk cost is irrelevant to a firm's current decisions.
C) A cost that influences a firm's current decisions is the short-run cost of changing its labour inputs.
D) A cost that influences a firm's current decisions is the long-run cost of changing its plant.
E) The short run is a time frame in which a firm can change its plant.