Search results
Results from the WOW.Com Content Network
In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. [ 1 ] [ 2 ] Sunk costs are contrasted with prospective costs , which are future costs that may be avoided if action is taken. [ 3 ]
A costly signal in which the cost of an action is incurred upfront ("ex ante") is a sunk cost. An example of this would be the mobilization of an army as this sends a clear signal of intentions and the costs are incurred immediately. When the cost of the action is incurred after the decision is made ("ex post") it is considered to be tying hands.
No sunk costs; The same level of technology is available to incumbent businesses and new entrants. A perfectly contestable market is not possible in real life. Instead, the degree of contestability can be observed within markets. [example needed] The more contestable a market is, the closer it will be to a perfectly contestable market.
Alamy There are some economic terms most of us know and understand, such as supply and demand. And there are other terms we will probably never even run across, like implicit logrolling and a ...
It is often important for businesses to distinguish between relevant and irrelevant costs when analyzing alternatives because erroneously considering irrelevant costs can lead to unsound business decisions. [1] Also, ignoring irrelevant data in analysis can save time and effort. Types of irrelevant costs are: [3] Sunk costs [4] Committed costs
From the traceability source of costs, sunk costs can be direct costs or indirect costs. If the sunk cost can be summarized as a single component, it is a direct cost; if it is caused by several products or departments, it is an indirect cost. Analyzing from the composition of costs, sunk costs can be either fixed costs or variable costs.
A pair of Saturday NFL games drew a larger viewing audience than college football for the rollout of the sport's 12-team playoff. The playoff game between SMU and Penn State averaged 6.4 million ...
Country superstar Lainey Wilson revealed she's patiently waiting for a proposal from her boyfriend, former NFL quarterback Devlin "Duck" Hodges.