Briefly explain the sunk cost fallacy

Reference no: EM131577240

Assignment - Three Short Answer Questions/Problems

Q1. Outline and explain the rational actor paradigm. Give any two examples of when it has not held.

Q2. Outline the advantages and disadvantages of using net present value and break even analysis as criteria for assessing a firm's investment decision.

Q3. An ice cream factory has set up shop in town. It paid $200k for the land and $100K for custom machinery that cannot be relocated elsewhere. The factory can produce litres of ice cream with the following operating schedule:

Volume (000's litres)	Operating cost schedule
100	$50k
200	$150k
300	$350k
400	$550k
500	$750k
600	$1.05M

a) Briefly explain the sunk cost fallacy.

b) What are the sunk costs for the firm?

c) If the ice cream is sold for $2.50 per litre (hint: allow for 000's units), what is the optimum quantity the factory should produce?

d) What is the profit or loss it will make at the optimum quantity?

Attachment:- Assignment Files.rar

Reference no: EM131577240

Questions Cloud

Does the strategy depend upon type of company and industry : Does the strategy depend upon the type of company and industry? Why or why not? Review the five generic competitive strategies discussed in the textbook.

Develop a fsm for entering a security code into an atm : Construct a finite-state machine for entering a security code into an automatic teller machine (ATM) that implements these rules.

Provide a brief overview-synopsis of the issue : Provide a brief overview / synopsis of the issue. Discuss the model or economic theory that relates to the issue presented in the news article.

What did the investigators do correctly : What did the investigators do correctly. What could investigators have done differently. Did you spot any potential evidence that was overlooked

Briefly explain the sunk cost fallacy : ECO5000 Assignment - Three Short Answer Questions/Problems An ice cream factory has set up shop in town. Briefly explain the sunk cost fallacy

Define finite-state machine for toll machine that opens gate : Construct a finite-state machine for a toll machine that opens a gate after 25 cents, in nickels, dimes, or quarters, has been deposited.

Which regions and quarter had the lowest sales : Be sure to consider highs, lows, and trends in the data. Which cities are the highest performers? Lowest? Which regions and quarter had the Lowest sales?

What is the target group of the commercial : What are the key persuasive techniques used in this commercial? Illustrate with specific examples, explaining how each technique works.

Regard to congress and the president : How does this impact the operation of monetary policy with regard to Congress and the president?

Reviews

len1577240

7/24/2017 8:16:26 AM

Need it as per the guidelines. A cover page will go at the front of your assignment submission. It must contain the following information at a minimum: Name (in full), USQ student number. The answer to each question shall have a maximum length of one (1) A4 page, font size 12. Content which goes over the one page limit per question will not be marked. Each question shall be marked out of five (5) – content 4.5, research, presentation, grammar, spelling etc 0.5 Maximum length of your submission shall therefore be four (4) pages. References (if needed and up to a maximum of three) should be placed at the end of your answer to each question. Files extensions that can be submitted are: doc, docx, rtf. Title your file with your surname. Submission is through the Assignment 1 portal which will be on the front page of the study desk.

Write a Review

Required(*) Message

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages