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{"ops":[{"insert":"ACME Coal paid $5,000 to lease a railcar from the Reading Railroad. Under the"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"terms of the lease, $1,000 of this payment is refundable if the railcar is returned within"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"two days of signing the lease."},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"a. Upon signing the lease and paying $5,000, how large are ACME\u2019s fixed costs? Its"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"sunk costs?"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"b. One day after signing the lease, ACME realizes that it has no use for the railcar. A"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"farmer has a bumper crop of corn and has offered to sublease the railcar from ACME at"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"a price of $4,500. Should ACME accept the farmer\u2019s offer"},{"insert":"\n"}]}

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