Title: On the Treatment of Fixed and Sunk Costs in the Principles Textbooks
Abstract:Abstract The author argues that, although the standard principles level treatment of fixed and sunk costs has problems, it is logically consistent as long as all fixed costs are assumed to be sunk cos...Abstract The author argues that, although the standard principles level treatment of fixed and sunk costs has problems, it is logically consistent as long as all fixed costs are assumed to be sunk costs. As long as the instructor makes that assumption clear to students, the costs of making the changes recently suggested by X. Henry Wang and Bill Z. Yang in the Journal of Economic Education are greater than the benefits. Keywords: fixed costssunk coststeaching principles of economicsRead More
Publication Year: 2004
Publication Date: 2004-10-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 11
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