Beware Of The Concord Fallacy

A domino effect: the consequence of one event setting off a chain of similar events; history is full of them. In 1914, countries around the world began to become involved in one of the most well-known wars in history, World War I. There is not just one single cause to this “Great War”, which could have been avoided, rather there are multiple. During this time tensions were high, especially after the assassination of the Archduke Franz Ferdinand, heir to the Austro-Hungarian throne, and his wife. Austria-Hungary, fueled with anger towards Serbia for the killings, saw this act as an opportunity to teach Serbia a lesson and eliminate any future Serbian threats. However this was an age of alliances, fighting one country also meant war with

Historic cost depreciation is being used which leads to skewed numbers that misrepresent how well a product line will continue to operate in the future due to understated replacement value of fixed assets.

All the costs by a company can be broken into two categories, fixed costs and variable costs. Costs that are independent of output are called fixed costs. Fixed costs remain constant throughout the relevant range and are usually considered sunk for the relevant range. Buildings and machinery are included inputs that cannot be adjusted in the short term. They are only fixed in relation to the quantity of production for a certain time period. The cost of all inputs is variable, in the long run.

Brought up in the 1950s, a theory primarily gave way to a supporting a war started in regards to it. After two world wars had started and ended in the span of less than 50 years, the first half of the 1900s were influenced and shaped by the war and war effort. This was a time in world history ruled by vulnerability, but not long after the end of the infamous world wars, the Cold War followed. This war was an American effort against the Russian to, in part, fight the rise of communism. One of the most notorious wars for America, the only war they ever lost, was the Vietnam War; a branch of the Cold War effort of containment, or at least the effort to stop the spread of communism, was a theory coined as the domino theory. While the theory made sense at the time, in hindsight, it was flawed, and there were other ways to accomplish the what the domino theory was then thought to achieve.

When evaluating a capital budgeting proposal we are interested in only the incremental after-tax cash flows to the company as a whole. Regardless of the decision made on the investment at hand, the sunk costs will have already occurred, which means these are not incremental cash flows. Therefore, they are irrelevant.

In his article “Is College a Sucker Bet,” Dave Maney(2013) claims that college is a sucker bet. Maney starts off the article by stating that he views the traditional structure of college education looks more and more like an anachronism. By saying that he views the college education as an anachronism, he believes it’s viewed not in the right historical time. He then further states that it’s an expensive anachronism at that. Saying that it’s expensive is showing that if your are looking at getting a college education it is going to be expensive.

Someone who went to college might say that it was their best years of their life, and others might say that they dreaded the fact of college. College is in fact very expensive. Many people who don’t go to college usually don’t have the money to go and at the same time, don’t earn the education they need. According to the article, “why is college so expensive” it states, “ As the government’s budget changed, so did the University’s funding.” This shows why college is majorly expensive because as the budget of the government changes, the cost of college

Relevant costs refers only to those costs that should be used in the decision making process. In one of the examples we discussed, the cost of previously purchased items such as advertising, business cars, and signage was described as sunk cost and not relevant costs. I previously assumed these factors would be considered. Now I know that relevant costs are only those new expenditures that will be incurred due to the decision that is made.

The federalist papers were an arrangement of eighty-five essays persuading the citizens of New York to ratify the new United States constitution due to lack of performance of the articles of confederation. The people of America needed a government stable and durable enough to maintain national unity over a large geographic area but yet not have absolute power. The essays originally appeared anonymously in the New York newspapers signed Publius and written by Alexander Hamilton, James Madison and James Madison according to the library of congress and the constitutional rights foundation. In the compilation of persuasion for the new constitution to be established two out of the many federalist papers number 10 and 51 are examples of Madison’s

Leonhardt, with the idea that a four-year degree is valuable, supports the statistic with a reference to a paper written by David Autor, an M.I.T. economist, for the journal Science which states that “the true cost of a college degree is about negative $500,000 (Leonhardt, 2014).” This then contradicts public misjudgment on college not being worth it. College is an investment which could be beneficial with proper mindset. As one receives their college diploma and lands a job, student deb merely begins to pay off. But with promotion after promotion, the loans once dreaded about decline to

The Federalist 10 written by James Madison, one of 85 essays written by some of our founding fathers to encourage the ratification of the Constitution, claimed that the only two ways to get rid of factions are to either to get rid of liberty, which is out of the question, or to give everyone the same opinions and interests, which is impossible, which means that factions have been weaved into our society and are impossible to get rid of; however, the best way to deal with them is to have a representative republic for our

Answer: The $262,500 test marketing cost is a sunk cost. It is a cost that would have been incurred whether the project was approved or not. It is not a cash flow that will only occur if the project is accepted. Therefore, since it is not an incremental cash flow that would only occur if the project is accepted, we do not include it as part of our analysis.

The risk of entry into the airline industry by potential competitors is low due to the “liberalization of market access, a result of globalization. According to the IATA (International Air Transport Association), about 1,300 new airlines were established in the last 40 years,” (Cederholm, 2016). The cost structure of businesses in an industry is a determinant of rivalry. In the Airlines Industry, fixed costs are high, because before the organization can make any sales, they must invest in air crafts, fuel and service employees. These items come attached with hefty price tags. Industries that require such enormous amounts of start-up capital as predicted by many analysts

Test Market expenses – This is a sunk cost and thus should not be included

The dubious authority fallacy would be when someone uses a replacement opinion from someone who is not a subject matter expert. My wife and I both use Google to figure out everything, and I feel like that would be an example of this. Today our society is spoiled by technology, and it has its advantages, but also its disadvantages. I feel that one of the disadvantages is the amount information that is available and unreliable information. All that information is also an advantage, because we don’t need to visit library or any other reliable information is all at the click of a mouse. We have all the information generations before us would have never known. Many of us rely on Google for our everyday questions, and I guess with proper research