1. What are sunk costs? Explain whether they are relevant costs. 2. What is an opportunity cost...

Question:

1. What are sunk costs? Explain whether they are relevant costs.
2. What is an that is relevant in a make-or-buy decision?

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...