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| | Sunk cost - Wikipedia, the free encyclopedia |
 | | Sunk costs are sometimes contrasted with variable costs, which are the costs that will change due to the proposed course of action. | | | A common example of a sunk cost for a business is the promotion of a brand name. | | | In economics and in business decision-making, sunk costs are costs that have already been incurred and which cannot be recovered to any significant degree. |
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http://en.wikipedia.org/wiki/Sunk_cost
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| | [No title] |
| | Sunk Costs Sunk Costs are costs that were incurred in the past. | | | The $2000 per unit attributed to the cost of the machine is a sunk cost and irrelevant. | | | Sunk and Opportunity Costs Questions: Contrast sunk costs and opportunity costs and explain which is relevant to decision making. |
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http://faculty.citadel.edu/woolsey/micro/sunk.doc
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| | Quasi-rent - Wikipedia, the free encyclopedia |
| | For sunk cost investments, once the investment has been made, the cost of drawing the result into economic use may be minimal. | | | Quasi-rent is an analytical term in economics, for the income earned, in excess of post-investment opportunity cost, by a sunk cost investment. | | | Once the sunk cost investment in research has been made, of course, efficiency would require that the results (i.e. |
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http://en.wikipedia.org/wiki/Quasi-rent
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| | Econ 310 |
| | Historical cost indicates market conditions at time of purchase, and is used in tax analysis, while current cost, which reflects current market conditions, is more relevant in valuation and cost analysis at the managerial level. | | | Sunk costs are those parts of the purchase cost that cannot later be salvaged or modified through resale or other changes in operations. | | | Current costs can be represented by replacement cost, which is the cost of replacing the productive capability of the capital item at current market prices. |
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http://www.humboldt.edu/~microeco/cost.htm
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| | Sunk Cost |
| | Sunk costs should be ignored in determining whether a new investment is worthwhile. | | | A cost incurred in the past that will not be affected by any present or future decision. |
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http://www.rms.net/sunk_cost.htm
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| | [No title] |
| | Sunk Cost Sunk costs are contracts and decisions that are already vouched and cannot be recovered anymore. | | | Sunk costs are ignored and are irrelevant to the businessman when making decisions regarding his business. | | | John’s fixed cost, which is the rent expense for the building can be considered a sunk cost because he signed a lease to continue on paying rent for the whole year. |
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http://www.csun.edu/~hceco008/c8d-ax.doc
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| | Sunk Costs Definition. Define Sunk Costs. What is Sunk Costs? |
| | Sunk costs refer to costs that are non-recoverable fixed costs. | | | The company will continue to have to pay these costs in the future, this is not the case for sunk costs. | | | Other fixed costs, that are not sunk (rent, depreciation on equipment etc.) should be factored in when making pricing decisions in the future, since these are ongoing costs to the company. |
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http://www.learnthat.com/define/view.asp?id=337
(452 words)
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| | [No title] |
| | A sunk cost is the value of money sunk into an investment. | | | sunk costs marginal costs average costs total costs fixed costs Which of the following is a synonym for "marginal" in economics? | | | If the payment is refundable until a certain date, it is not a sunk cost before that date but becomes one after it. |
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http://www.acsu.buffalo.edu/~chetan/181-03/ans/chap1-3.doc
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| | sunk cost definition |
| | Sunk cost are the past expenditures for a given activity that are typically irrelevant in whole or in part to future decisions. | | | The “sunk cost fallacy” is an attempt to recoup spent dollars by spending still more dollars in the future. | | | Contact us for a business plan quote to learn more about how we define sunk cost and how we can help you complete your business plan today. |
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http://www.hjventures.com/glossary-sunk-cost.html
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| | Understanding the Sunk Cost Effect: An Experimental Approach |
| | The purpose of this project is to examine the relevance of sunk costs in decision-making. | | | Explicitly or implicitly, surveys and experiments on sunk costs necessarily share (at least) three common elements: (i) the sunk cost, (ii) an initial endowment (or budget), and (iii) the marginal cost and benefit of escalation (i.e. | | | A "sunk" cost is an unrecoverable monetary or time commitment made to an endeavor. |
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http://www.nyu.edu/econ/dept/esa/elliot.htm
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| | Sunk cost |
| | The purchase of the original building is a sunk cost and is irrelevant in the school?s decision to purchase the new building. | | | A sunk cost is a cost that has been incurred in the past and cannot be reversed now. | | | The cost of the original building does not influence the school long-run decision concerning the number of class rooms and it does not influence the school's short-run decisions concerning how many teachers to hire and how many students to enrol. |
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http://www.economicsplace.com/econ5e/glossary/sunkcost.html
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| | [No title] |
| | Marginal cost, total variable cost, and average variable cost will be unaffected in the short run. | | | The opportunity cost of gasoline here is the same for both cars as it will cost you the same amount (the new, higher gas price) to replace the gasoline you use from either car. | | | Therefore the economic cost of traveling is the same regardless of which car you use. |
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http://faculty.insead.edu/suslow/Homeworks/ans8-14.doc
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| | Ecology and Society: Overexploitation of renewable resources by ancient societies and the role of sunk-cost effects |
| | Thus, consideration of the incremental costs and benefits, not of sunk costs, explains the parental investment decisions. | | | Because higher draft picks cost the team more money, both their greater playing time and their enhanced career longevity are examples of the influence of high sunk costs. | | | Sunk costs and the natural resource extraction sector: analytical models and historical examples of hysteresis and strategic behavior in the Americas. |
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http://www.ecologyandsociety.org/vol9/iss1/art6/main.html
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| | MTW44.HTM, COSTS: Fixed, Variable, Direct, Indirect, Incremental, Marginal, Sunk |
| | Life Cycle Costs are the total cost to an organization for acquisition and ownership of a product or asset over the life of the asset. | | | Fixed costs are at any time the inevitable costs that must be paid regardless of the level of output and of the resources used. | | | For normal accounting purposes the sunk cost is the difference between book value and salvage value of an asset. |
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http://www.unb.ca/web/transpo/mynet/mtw44.htm
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| | sunk cost |
| | Sunk cost can be used to represent the sum of all past costs incurred, including embedded costs and capital costs, but it does not include labor, rental, maintenance or other ongoing charges for things required in the present. | | | A commonly-used economics term that refers to an unavoidable cost that has already been incurred; a cost which has already been sunk into a particular activity or enterprise. |
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http://www.energyvortex.com/energydictionary/sunk_cost.html
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| | Economics 101 |
| | The opportunity cost of something is essentially the cost of not putting a resource to its best use. | | | All we mean is that it is important to consider the cost of not doing things at the same time that you consider the costs of doing them. | | | Opportunity cost is an important concept to keep in mind when contemplating important financial decisions for your co-op. |
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http://www.cooperativegrocer.coop/cg1998/economics101.shtml
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| | Lynn Tallman - UF Journal of Undergraduate Research Paper |
| | For sunk cost scenarios, one version had no sunk cost present in the decision problem while the other version included a sunk cost in the information. | | | According to traditional economic theory, decisions should be based only on the incremental costs and benefits that are expected to arise from an option because sunk costs cannot be recovered. | | | A sunk cost is a past investment of money, effort, or time associated with a current decision (Larrick et. |
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http://www.clas.ufl.edu/jur/200410/papers/paper_tallman.html
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| | Sunk Costs |
| | In the future, I shall refer to the position that sunk costs should never be honored or taken into account in decision making as >the economist=s doctrine= because economists, more than other decision theorists, have typically seen no rational place for attending to sunk costs. | | | Generalizing, for any case in which a sunk cost has been incurred, we can construct a parallel case in which preferences, assets and expectations are precisely the same, but no sunk cost has been incurred. | | | Since taking sunk costs into account sometimes is desirable... |
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http://personal.bgsu.edu/~roberth/sunkost.html
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| | Sunk Cost |
| | The money that you have already spent is sunk cost. |
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http://www.csuchico.edu/~shockley/syllabi/Ch1_McE97/sld030.htm
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| | Sunk Cost |
| | Whatever you have already spent is a sunk cost. | | | Well, that's a sunk cost that if we're not getting any return on, that's an issue for me and it should be for the taxpayers as well. | | | In a statement, the company said the entire seed capital of RM3bil to establish Danaharta was expected to be a sunk cost; however, after retiring all... |
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http://finance.za-news.com/new/Sunk_Cost.html
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| | Energy Glossary Letters S |
| | The added costs of the supplier are subtracted from the avoided costs of the buyer, and the difference is evenly divided. | | | It is given billing credit for the excess electricity (displacing retail electricity costs minus wheeling charges) on the bills for its other sites. | | | This strategy diversifies project risks from what they would be if each project were financed individually, thereby reducing the cost of financing. |
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http://www.energy.ca.gov/glossary/glossary-s.html
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| | sunk cost and Stock Trading at TradeStars + Stock Trading |
| | sunk cost and stock trading - information about sunk cost from the world leader at no charge. | | | heavily traded), individuals who appear paranoid, claiming that sunk cost the markets are rigged by the big boys or over the last few hundred years, that economic activity has increased exponentially. | | | Until the sunk cost day trade call is met during |
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http://www.tradestars.com/content/sunk-cost.asp
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| | Sunk Cost |
| | On sunk cost and the economics of investment. | | | CLARK, G.L. and N. Exit, the rm and sunk costs: reconceptualizing the corporate geography of disinvestment and plant …. | | | The strategic implications of sunk costs: A behavioral perspective. |
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http://sunk-cost.behaviouralfinance.net
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| | thorninpaw: The Sunk Cost Fallacy |
| | In so doing, it explicitly invoked the sunk cost argument, which was doubly fallacious because not only was it unrelated to potential dividends in a changed strategic environment, but it lowballed future development and production costs, thereby making the argument even more skewed. | | | It is stubbornness; it is also the sunk cost phenomenon at work. | | | Fortunately for our governing class, the sunk cost argument lies ready: "We've come this far; there's no turning back." Taxpayers have committed $121 billion and military families a much heavier cost, but the U.S. government has not accomplished a single major prewar objective save deposing the senile Saddam Hussein. |
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http://www.thorninpaw.com/mt/archives/000459.html
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| | stillhq.com : Mikal, a geek from Canberra living in Silicon Valley |
| | Anyways Sunk Costs are costs which have been incurred and can't be recovered. | | | The people who don't understand this are the ones selling old machines for more than a new machine costs because they once paid a lot of money for it. | | | Therefore, the value of the laptop now is whatever I could get for it if I sold it now, not what I paid. |
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http://www.stillhq.com/diary/000909.html
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| | Classroom Expernomics: Spring 1994 |
| | Sunk Cost and Marginal Cost: An Auction Experiment | | | In this simple supply and demand experiment, the values which were assigned for costs of production and reservation prices determined an equilibrium price range between $3.50 and $3.75 with a theoretical average of $3.625 in all variations of this experiment. | | | The concepts of sunk and marginal costs can be difficult to get across to students. |
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http://www.marietta.edu/~delemeeg/expernom/s94.html
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| | Dispatches From the Moderate Left: The Sunk-Cost Fallacy Fallacy |
| | Taking into account sunk costs gives us incentives to be careful with what we buy and coding different moneys in different accounts can be a good shorthand way of managing our complicated financial affairs, even if it isn't optimal. | | | The "sunk costs" are sunk whatever your decision; only the future matters. | | | A Slate article this week discussed the sunk cost fallacy in a way typical of normal economists. |
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http://modleft.blogspot.com/2005/09/sunk-cost-fallacy-fallacy.html
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| | Sunk cost |
| | A cost that has already been incurred and is not recoverable. | | | The practical Guide to successful cost benefit analysis and business case presentation. | | | The phrase "Don’t throw good money after bad" captures the sense in which financial professionals generally view sunk costs. |
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http://www.solutionmatrix.com/sunk-cost.html
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| | [No title] |
| | Thus, whether individuals will incur sunk costs for behavioral investments is a function of the magnitude of this value relative to the incentive to offset this value. | | | In two experiments, we show that purely behavioral sunk costs can influence consumers’ decisions to switch to a superior product once an interim choice for another product has been made by consumers. | | | This sunk-cost effect, in turn, may lead consumers to favor sub-optimal options over forthcoming superior options, placing vendors of superior products at a disadvantage when their products are considered later in the evaluation process. |
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http://faculty.washington.edu/cunhamv/papers/SCB_abstract.doc
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| | APRIL 23 |
| | Importance of sunk cost (turning the liability of irreversible costs into an advantage) | | | By investing in additional sunk cost, the incumbent can deter entry even though the limit output would have to be high to do so. | | | (3) The incumbent's cost (with sunk costs) (Figure 8.5): |
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http://www.udel.edu/Economics/mulligaj/spring_1998/ec861/APRIL23.htm
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| | Sunk Cost |
| | One cost we could help you to tackle is inventory overhead. | | | "Webbin' It" understands all companies, no matter their business, will incur some sunk costs. | | | We can help you develop systems that will minimize the amount of raw materials in your inventory. |
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http://www.webbin-it.com/Sunk_Cost/sunk_cost.html
(100 words)
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| | [No title] |
| | Unavoidable costs are never relevant and include: Sunk costs. | | | Opportunity costs are not actual dollar outlays and are not recorded in the accounts of an organization. ¡ À À ó Î @ ¨ Special Orders ¨ Jet, Inc. receives a one-time order that is not considered part of its normal ongoing business. | | | ¯ ¬& ? Ù Ú % ðn@ ó j ¨" Relevant Costs for Decision Making ¡ # # 6 ª ó ¨! Cost Concepts for Decision Making ¡ " " $ ¨? A relevant cost is a cost that differs between alternatives. ¡B @ $ $ Ìþ $ - $ ó ‘ ¨ Identifying Relevant Costs ¨ Costs that can be eliminated (in whole or in part) by choosing one alternative over another are avoidable costs. |
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http://www.baskent.edu.tr/~msu/downloads/Chp13.ppt
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| | Resistance to DeMause's Findings: Sunk Cost of Historical Interpretations That Omit Human Love by James C. Duffy |
| | If one has to face the reality of sunk costs in pursuit of an acquisitive goal, the irrationality and suffering from disappointment is not so severe as when having to face the sunk cost of pursuing a maintenance goal. | | | The lost, stranded, or sunk costs in pursuing a goal that now comes into focus as practically impossible to attain are a powerful image that can irrationally sustain still more futile motivation to persist in pursuit of a lost cause. | | | We human beings seem to have much difficulty accepting that all costs already incurred in a futile pursuit are sunk, or, as is also said, are stranded costs. |
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http://primal-page.com/duffy1.htm
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| | Marginal Revolution: When is it rational to honor sunk costs? |
| | I guess Tyler Cowen's assessment of the sunk costs of blogging is why I'm still at it, from a purely economic perspective anyway. | | | Robert Nozick argued that we follow through on sunk costs as a kind of self-discipline, to prevent ourselves from initiating too many stupid undertakings in the future. | | | So a theoretical scolding of those who honor "sunk costs" is not completely well-defined. |
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http://www.marginalrevolution.com/marginalrevolution/2004/03/when_is_it_rati.html
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| | Errors and Bias in Judgment |
| | Be alert to sunk cost bias in the decisions and recommendations made by others. | | | We know rationally that sunk costs—past investments that are now irrecoverable—are irrelevant to decision making. | | | It may be hard to abandon a plan as costs accumulate because decision makers don't want to admit that earlier investments were "wasted." |
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http://www.prioritysystem.com/reasons1.html
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| | 403 Forbidden |
| | You don't have permission to access /Cost on this server. |
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http://open-encyclopedia.com/Cost
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| | Fallacy of Sunk Cost & Transsexualism |
| | The $100 you have already paid is technically termed a sunk cost. | | | Rationally, sunk costs should not effect decisions about the future. | | | It's very easy to fall into the fallacy of sunk cost. |
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http://www.genderpsychology.org/psychology/sunkcost.html
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| | To determine when profits will occur based on plant size and cumulative output. ¡, ’ l ó ü ‘ ¨ Estimating and Predicting Cost ¨ö Estimates of future costs can be obtained from a cost function, which relates the cost of production to the level of output and other variables that the firm can control. | | | After 8 years the labor requirement will be 0.51 and per unit cost will be half what it was in the first year of production. ¡, , á ’ l , á ó ÷ ¨ The Learning Curve in Practice ¨µ Scenario A new firm enters the chemical processing industry. | | | Suppose we wanted to derive the total cost curve for automobile production. ¡& ÷ 1 }ÿþ¹ ó ý ’ ¨, Total Cost Curve for the Automobile Industry ó þ “ ¨ Estimating and Predicting Cost A l i n e a r c o s t f u n c t i o n m i g h t b e : T h e l i n e a r c o s t f u n c t i o n i s a p p l i c a b l e o n l y i f m a r g i n a l c o s t i s c o n s t a n t . M a r g i n a l c o s t i s r e p r e s e n t e d b y bð ¡ |
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http://www.runet.edu/~gsantopi/econ306f04/PPT/pindyck_microecon6_ppts5-8/Ch07.ppt
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| | Deloitte-Corporate Governance: Sunk Cost or Rewarding Investment... |
| | However, Deloitte demonstrates how it is possible for Canadian companies to turn the 'sunken cost' of compliance into real business advantage through maximizing business benefits beyond compliance. | | | Without question, complying with the new requirements will have a cost. | | | NEWS RELEASE TRANSMITTED BY CCNMatthews FOR: DELOITTE JULY 6, 2005 - 08:57 ET Deloitte-Corporate Governance: Sunk Cost or Rewarding Investment... |
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http://www2.cdn-news.com/newsnet/2005/07/06/0706038n.html?cp=mediama
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| | Relevant marginal cost is $4000/day ó e C ¨ Positive Net Gain ¨³ Comparing the marginal cost to the marginal benefit of the next unit tells whether or not there is a net gain If the net gain is positive, then the next unit should be undertaken ¡6 n E n E ó f ¨ Example 4.1 Rock Concert ¡ ! ¨ Dana has purchased a $25 ticket to a rock concert. | | | Except for the cost, you are completely indifferent between driving and taking the bus. | | | Boat and Labor are sunk in very short run Opportunity cost of fishing is $1000/day for fuel and ice. |
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http://econ.bu.edu/Ellis/EC101/slides/Chap02re.ppt
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| | EconPapers: Searching for the Sunk Cost Fallacy |
| | Abstract: We seek to isolate in the laboratory factors that encourage and discourage the sunk cost fallacy. | | | Working Paper: Searching for the Sunk Cost Fallacy (2004) | | | Keywords: sunk; cost; fallacy (search for similar items in EconPapers) |
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http://econpapers.repec.org/paper/wpawuwpex/0407007.htm
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| | Resource Investor - PGMs - Finland Palladium Project Sunk on Cost Blow Out |
| | The cost of engineers to develop the project had risen 60% in 18 months, with similar rises in the cost of steel. | | | Our publisher, Investor Resource Media, has a long commitment to reducing the cost of capital in the resource sector, and is now branching out to bring you Resource Investor. | | | An analyst said while Gold Fields was acting sensibly, “it is a setback, as they have been planning sizeable offshore growth, and Arctic Platinum was going to make up a chunk of that growth”. |
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http://www.resourceinvestor.com/pebble.asp?relid=9465
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| | S-WoPEc: What Fraction of a Capital Investment is Sunk Cost? |
| | Abstract: In order to determine to what extent capital investments are sunk costs this study deals with salvage values of discarded metalworking machinery. | | | Even though these assets are expected to be non-specific many of the discarded assets are scrapped rather than sold on second-hand markets. | | | Asplund, Marcus, (2000), 'What Fraction of a Capital Investment is Sunk Cost?', Journal of Industrial Economics, Vol. |
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http://swopec.hhs.se/hastef/abs/hastef0068.htm
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| | These choices are based on a comparison of expected benefits and cost. |
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http://www.msubillings.edu/BusinessFaculty/Harris/CH04.ppt
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