Future decision about whether to produce ethanol for gasoline or for hard sanitizer would not be informed by the sunk costs they incurred to retrofit their plant.
This question requires that we fill in the blank at the end of the question. The sunk cost can be referred to as a cost that has already been incurred. This money cannot be recovered again.
Profit maximization is a situation where by firms would try to lower their input costs and go for the highest output that would give them the optimal level of profit.
The decisions on production would not be determined by sunk cost, instead it would be determined by the benefits that the firm would accrue.
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