You are considering a decision to expand your firm wich currently makes face masks by also...
You are considering a decision to expand your firm wich currently makes face masks by also producing fashionable wallets and scarves that would match the face mask you sell. You think sales of your face masks could increase by $500 a month. Which of the following is true?
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The $500 should be included as a negative cash flow since it is an opportunity cost |
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The $500 should be included as a negative cash flow since it is a negative externality |
||
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The $500 should be included as a positive cash flow since it is a positive externality |
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The $500 should not be included as a negative cash flow since it is a sunk cost |
Homework Answers
Answer is C.
It is positve cash flow because firm will have more revenue due to more sal.
#Please rate positively...thank you
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