Why do firms not have sunk costs over time? How should managers approach sunk costs when deciding whether to enter a market or remain in it?

Q: explain how sunk costs create a barrier to entry into the market place.

A: Sunk costs are expenses that can not be retrieved if a corporation wishes to leave a market.

Q: Why do firms not have sunk costs over time? How should managers approach sunk costs when deciding…

A: Answer:-  Sunk cost meaning:- Money which has been already spent and cannot be recouped is known as…

Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity…

A: b. is called the hold-up problem

Q: Why is it critical to examine profitability, with a particular emphasis on return on investment?…

A: Introduction: The term profitability refers to a profit-measurement metric. An analysis is performed…

Q: How does a cost-efficient capital market help reduce the prices of goods and services?

A: A market where the companies are registered and issue the long-term debt and equity securities to…

Q: How do managers decide whether a cost is avariable or a fixed cost?

A: Cost refers to the amount of money incurred for acquiring a product or manufacturing a product. Cost…

Q: What analysis ensures that the income for the firm will cover its variable costs?    a. ratio…

A: Companies need to analyse how many products to sell or how much sales to make in a financial year to…

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: ompanies allocate costs? What are some of th

A: The process by which a firm allocates and assigns its different expenses or costs to certain goods,…

Q: How does the cost system affect the financial position of the firm?

A: Cost system is the system which is designed to evaluate the monitor the cost incurred by the…

Q: Is there a point in a cost-volume-profit analysis when the company is expected to profit?

A: Is there a point in a cost-volume-profit analysis when the company is expected to profit? Answer:…

Q: How will relating product contribution margins to the amount of the constrained resource theyconsume…

A: Definition: Contribution Margin: The process or theory which is used to judge the benefit given by…

Q: How may using ROI as a success indicator for investment centers lead to poor decisions? How does the…

A: ROI: It calculates the amount of return on a particular investment about the investment's cost. The…

Q: If a firm's marginal revenue is smaller than its marginal cost, then the firm should collect…

A: Answer (d) Decrease output to increase profit Marginal Revenue means Additional Revenue generating…

Q: Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a…

A: Sunk Costs: Sunk costs are those costs incurred in the past and it cannot be changed unless if any…

Q: What profit-based pricing approach should a manager use if he or she wants to reflect the percentage…

A: Profit grounded pricing strategy is the approach which involves setting the prices for the product…