​The hidden-cost fallacy occurs when

A) ​A firm considers irrelevant costs
B) A firm ignores relevant costs
C) A firm considers overhead or depreciation costs to make short-run decisions
D) ​Both a and c

Relevant Costs

All costs that vary with the consequence of a decision.

Hidden-cost Fallacy

This fallacy occurs when not all costs associated with a decision or action are considered, leading to an underestimation of the true cost.

Overhead

The ongoing administrative, operational, or general business expenses that are not directly tied to the production of goods or services.