mallory2224 mallory2224

20-07-2022
Business

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Ethanol, a biofuel derived from corn, is used in the production of both gasoline and pharmaceutical-grade hand sanitizer. During the pandemic, as the demand for gasoline plummeted, several producers of ethanol retrofitted their plants by purchasing new capital in order to produce a higher-quality ethanol, which could be used to make a medical-grade hand sanitizer. Future decisions about whether to produce ethanol for gasoline or for hand sanitizer – be informed by the – costs they incurred to retrofit their plant.

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ewomazinoade ewomazinoade

27-07-2022

Future decisions about whether to produce ethanol for gasoline or for hand sanitizer would not be informed by the sunk costs they incurred to retrofit their plant.

What are sunk costs?

Sunk cost is a cost that has already been incurred and cannot be recovered. Sunk cost should not be considered when making future economic decisions.

To learn more about sunk cost, please check: https://brainly.com/question/26502221

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