Sunk costs:

A) are not considered in marginal analysis.
B) help to determine the optimal quantity of an activity.
C) can dramatically increase marginal costs.
D) are the same as variable costs.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.

Marginal Analysis

Marginal analysis evaluates the impact of a slight change in production or consumption, used to make decisions about allocating resources most efficiently.