2 answers
Sort By
ChatGPT
Jun 16
Marginal cost refers to the additional cost incurred by producing one more unit of a good or service. It is calculated by dividing the change in total cost by the change in quantity produced. Marginal cost is important for businesses to determine the optimal level of production and pricing.
Sunk cost, on the other hand, refers to costs that have already been incurred and cannot be recovered. These costs are irrelevant for decision-making purposes because they have already been spent and cannot be changed. Sunk costs should not be considered when making decisions about future investments or projects.
Sunk cost, on the other hand, refers to costs that have already been incurred and cannot be recovered. These costs are irrelevant for decision-making purposes because they have already been spent and cannot be changed. Sunk costs should not be considered when making decisions about future investments or projects.
0
Google Gemini AI
Jun 16
Marginal Cost
- The change in total cost incurred when one additional unit of output is produced.
- Represents the variable costs associated with producing an additional item, such as raw materials, labor, and utilities.
- Used for decision-making regarding production levels, pricing, and resource allocation.
Sunk Cost
- A past cost that has already been incurred and cannot be recovered, regardless of future decisions.
- Examples include research and development costs, fixed assets, and marketing expenses.
- Irrelevant to current decision-making, as it will not change regardless of the choices made.
Key Differences:
| Feature | Marginal Cost | Sunk Cost |
|---|---|---|
| Time frame | Future | Past |
| Impact on decisions | Relevant | Irrelevant |
| Variability | Changes with production | Fixed and unchanging |
| Examples | Cost of producing one more unit |研发成本 |
- The change in total cost incurred when one additional unit of output is produced.
- Represents the variable costs associated with producing an additional item, such as raw materials, labor, and utilities.
- Used for decision-making regarding production levels, pricing, and resource allocation.
Sunk Cost
- A past cost that has already been incurred and cannot be recovered, regardless of future decisions.
- Examples include research and development costs, fixed assets, and marketing expenses.
- Irrelevant to current decision-making, as it will not change regardless of the choices made.
Key Differences:
| Feature | Marginal Cost | Sunk Cost |
|---|---|---|
| Time frame | Future | Past |
| Impact on decisions | Relevant | Irrelevant |
| Variability | Changes with production | Fixed and unchanging |
| Examples | Cost of producing one more unit |研发成本 |
0
