But there is all the lit on cost of capital, rules for decisions on financing capital expenditures, optimal investment, etc etc.
Sep 3, 2009 08:48:55 AM, [email protected] wrote:
===========================================
On Sep 3, 2009, at 8:30 AM, Ann Davis wrote:
> Beginning principles of micro one more time............the focus on
> marginal costs and marginal benefits, ignoring sunk costs, seems to
> make very clear how micro is simply ignoring the problem of
> capital. If capital investment can be interpreted as "sunk costs,"
> it is "irrelevant." Mainstream economics has left this question
> entirely to "finance" and to accounting, it seems.
According to the standard finance text I have lurking on some
bookshelf somewhere, you should ignore sunk costs in evaluating a
project's continued viability. So even finance isn't interested in the
question!
Doug
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
_______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
