Andy recently switched his long distance telephone service from Ma Bell to Pa Be
ID: 2440613 • Letter: A
Question
Andy recently switched his long distance telephone service from Ma Bell to Pa Bell andhad to pay his local telephone company a $10 fee to make the change. As an incentive totry their long distance services, Pa Bell promised to reimburse him for the switching feeif he chooses to switch to another carrier after trying their service. From Andys perspective, the switching fee is a
A.fixed cost and a sunk cost
B.fixed cost, but not a sunk cost.
C.variable cost and a sunk cost.
D.variable cost, but not a sunk cost.
E.neither a fixed cost nor a sunk cost.
Explanation / Answer
B. fixed cost ,but not a sunk cost
Reason ;
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