d) Sunk costs

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4 Terms

1
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  • sunk cost


  • a cost that has already been paid and cannot be recovered


2
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  • the sunk cost fallacy


  • when a loss-making firm stays in business due to sunk costs


3
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  • the sources of sunk costs


  • highly specialised assets

  • investments into advertising/R&D


4
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  • n/a


  • n/a