On the Treatment of Fixed and Sunk Costs in the Principles Textbooks

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.

MoreLess

Year of publication:	2004
Authors:	Colander, David
Published in:	Journal of Economic Education. - Helen Dwight Reid Foundation, ISSN 0022-0485. - Vol. 35.2004, 4, p. 360-364
Publisher:	Helen Dwight Reid Foundation
Subject:	fixed costs \| sunk costs \| teaching principles of economics

More details

Extent:	application/pdf
Type of publication:	Article
Classification:	A22 - Undergraduate
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005600592