Past events which play no part in rational present decision-making. For a firm, bygones include sunk costs and past operating profits and losses, except to the extent that these play a part in forming present expectations.
An in-depth exploration of the Exit Price, which is the price point below which firms will leave an industry, considering sunk costs and economic implications.
Exploring the strategic market entry method of Hit-and-Run Entry, its mechanics, conditions, implications, and associated theories and examples.
Overhead costs are the fixed costs a business must incur for production to be possible. These costs can be short-term or long-term and may include unavoidable sunk or irrecoverable costs.
A detailed exploration of Quasi-Rent, an economic concept representing temporary earnings from factors of production, akin to rent. Discusses historical context, types, significance, mathematical models, applications, examples, related terms, and much more.
Relevant cost refers to an expected future cost that varies with alternative courses of action. Understanding relevant costs is crucial for various business decisions such as special selling-price decisions, product-mix decisions, equipment replacement, outsourcing, and decisions on dropping a product or closing a department.
A comprehensive overview of sunk costs, their implications in accounting and management, examples, comparisons, and historical context.
A comprehensive look into sunk costs, their economic impact, types, key examples, and their significance in decision-making.
