Home » Online Course » After spending $5 million developing a new MP3 player, you discover that a competitor is about to introduce a new model similar to yours at a lower per unit price. The $5 million development cost:

After spending $5 million developing a new MP3 player, you discover that a competitor is about to introduce a new model similar to yours at a lower per unit price. The $5 million development cost:

should be considered as fixed cost for the firm.

should not be included while determining the opportunity cost of this investment.

should be ignored in your decision on whether or not to introduce your new MP3 player.

should be factored into your decision on whether or not to introduce your new MP3 player.

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