Sunk cost dilemma

relationship between total cost and output, assuming that the firm produces in the most efficient manner possible given its current technological capabilities. Semifixed: fixed over certain ranges of output but variable over other ranges AC(Q): average cost function; describes how the firms average cost function or per unit of output costs vary with the amount of output it produces.  When average costs decreases as output increases, there are economies of scale Margincal cost: refers to the rate

Baines limit pricing of keeping the price equal to marginal cost also posed a limit to entry of firms. With onset of digitalization, these challenges of entry barriers do not exist, as technology provides a cutting edge to the disruptors. The digital innovators are able to achieve economies of scale at a faster pace. The digital platforms once innovated, enables these disruptors to produce goods at almost zero marginal cost. The marginal cost of another E book copy or another user page on a

fueled with intensity and passion. b. Real world: iv. It’s tough to sustain commitment (take a vacation) v. Self-interest sometimes takes over (reflect, renew, etc.) vi. Right vs. Right dilemmas (Weeks 9 and 10) vii. Right vs. Wrong dilemmas (Hirschman’s 3-option model) 2. The study of ethics (foundational underpinnings of the course and topic) This is hard to itemize without giving

The Vinsun case presents an interesting dilemma encompassing innovation, organizational culture and financial implications. Faced with a decision that will either vault Vinsun into prominence or sink them into oblivion with the other failed enterprises, CEO Sunil Satav must tread carefully to ensure he avoids the latter. Before delving into the options and their merits, let us first consider the status quo and assess why it is unsustainable going forward. Vinsun’s current position At present, Vinsun

Hidden flaws in strategy Charles Roxburgh The McKinsey Quarterly, 2003 Number 2 After nearly 40 years, the theory of business strategy is well developed and widely disseminated. Pioneering work by academics such as Michael E. Porter and Henry Mintzberg has established a rich literature on good strategy. Most senior executives have been trained in its principles, and large corporations have their own skilled strategy departments. Yet the business world remains littered with examples of bad strategies

joint ventures in another 15 countries. The Policy Dilemma In order to guarantee a good sale price and thereby substantial revenue for the Treasury, there was a need to keep any legislation, which applied to BT fairly light. Private investors would not be attracted to an organisation which was still operating within a political straightjacket. However, the transfer of a complete monopoly could lead to inefficiency in terms of costs, prices, innovation and so on. Some constraints were

* Rita Sanchez expressed that with the $63 million invested in the six new fishing vessels, there is no way that they’re going to sit idle and inventory will only continue to grow. She refuted Hargrove expressing the surplus of inventory are sunk costs and that it would be better to sell them at a loss than for nothing. C. Importance of Decision: While the decision for what Neptune should do with it’s excess inventory is important for Neptune’s ST financial status, the decision to launch a new

AUSOC 218 Responding Sociologically to Problematic Statements Final Test Zoraa Lutas 1353639 Practices which differ radically from Canadian culture, such as differing dietary pattern, the wearing of the burqa, the unequal treatment of ethnic minorities, worshipping the water goddess, and female genital cutting, should be accepted simply as part of global cultural diversity. “Globalization has had a profound impact on culture, largely through the existence of very powerful world

Discuss the pros and cons of implementing a nationwide road pricing scheme The introduction of a nationwide road pricing scheme has been extensively considered in the UK. Early deliberations in the ‘Smeed Report’ implemented road pricing in 1962 using a colour coding system. With computing and telecommunications changes in recent years there is potential for the road pricing scheme, which was a component of the labour manifesto in 2005 using satellite navigation to track vehicle activity, to be

Navigating Uncertainty: How to succeed when you don’t know where to start It’s no secret that we are living and working in complex, unpredictable times. Accepting that is one thing, but what we all want to know is how to deal with it. By definition there are no longer any “best practices” that can guarantee success for an organization; there are only good practices that we can stumble upon through experimentation. Add to that the fact that success in itself is a continuously evolving state, and