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Assume that a supermarket is considering replacing all of its frozen food freezers. The new freezers use less energy to operate than the existing freezers.
Assume that a supermarket is considering replacing all of its frozen food freezers. The new freezers use less energy to operate than the existing freezers. Two costs that have been discussed by various employees with respect to this decision include the utility cost or energy cost that would continue to be incurred if the company decides to keep its existing freezers, and the price that would be paid for the new freezers. Which of the following choices properly classifies each of these costs as being relevant or irrelevant in the decision to "keep or replace" the freezers?
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