--%>

Differences between Sunk Cost and Incremental cost

Illustrates the differences between Sunk Cost and Incremental cost?

E

Expert

Verified

Sunk Cost:

Sunk costs are those that have already been incurred and that cannot be changed by any decision made here or in the future. Such are past or historical costs.

Incremental cost:

It is additional costs incurred because of a change in the level or nature of activity.

   Related Questions in Managerial Economics

  • Q : Competitive demand of employer A

    A competitive demand of employer for labor is: (1) derived from the demand that exists for the firm’s output. (2) inverted compared to regular demands. (3) shifted rightward by hikes in real wage rates. (4) positively sloped. (4) determined thro

  • Q : Forecasting demand what are the

    what are the criteria for good forecasting

  • Q : What are the important pricing

    What are the important pricing strategies?

  • Q : Illustrates the Importance of

    Illustrates the Importance of managerial economics?

  • Q : Labor Productivity Where diminishing

    Where diminishing returns overwhelm gains through the division of specialized labor, when there is an inflection point on the total revenue curve derived by a total output curve, and by the vantage point of a purely competitive firm h

  • Q : Operational or internal issues of

    What are the operational or internal issues of managerial economics?

  • Q : Opportunity cost of good Since an

    Since an economy moves downward all along the production possibility frontier which is concave from beneath, the: (1) Opportunity cost of the good whose production goes increasing. (2) Law of rising returns outcomes ever lower costs. (3) Dollar value

  • Q : Income and Substitution Effects When

    When the income effect of a higher wage rate is extremely powerful in that case the substitution effect, the: (1) supply curve of labor will be positively sloped. (2) demand for leisure increases like income rises. (3) human capital effect is stronger

  • Q : Moral Hazard and Efficiency Wages

    Firing a worker who regularly goods off and calls in sick may not resolve the moral hazard problem of shirking when: (w) there is a high probability which the worker will sue the firm. (x) the local unemployment rate is high. (y) average worker productivity is low. (z

  • Q : Estimate demand The Real Kool Toys

    The Real Kool Toys Company manufactures and sells educational toys. An empirical demand function for one of the firm's products has been estimated over the last 21 quarters using regression analysis. The estimated demand function is: QY = -8,000 - 5,000PY + 192A + 120I + 2,000PX (6,000) (1,000)