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Monday, March 28, 2016

A fast-food company spends millions of dollars to develop

 March 28, 2016     No comments   

A fast-food company spends millions of dollars to develop
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should: A - keep the hamburger on the menu because they've spent so much money and time developing and promoting the product. B - spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. C - pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. D - keep trying to sell the hamburger so that people who developed and promote it have a job with the company.

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