If the thought of finishing an expensive meal even if the appetite is full is right or not. Concept Introduction: Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

??!!

. What the heck is this GDP thingy? It is Thursday afternoon, just a few days before the holiday season starts in your region, and you decided to visit your uncle Chao who owns a local delivery company. While sitting in the living room watching the evening news with your uncle, you heard the news reporter stating the following with an optimistic tone: "According to recent studies, gross domestic product (GDP) is rising due to an increase in consumer spending. The increase in spending was due to an increase in consumer confidence because the job market has shown a positive increase in both employment and income." Immediately, your uncle Chao looked at you with some confusion on his face and asked: What the heck is GDP, and why does the news dude seem excited about its increase? Does this “good” change in this GDP thingy have any effect on my delivery business? How? Do I need to do something different to prepare for the rise in GDP? How?

3. I need people who don’t want me! As an operations manager at a factory that produces manual tools, you were tasked with preparing a new site for expansion. The plan is to start production in the new location within 6 months from the current date. The new location requires 100 workers to operate fully. The workers you need don’t require any form of education or special skills because the tasks at the factory are simple and straightforward. In other words, you typically hire lower-skilled workers. In recent years, your company has been having problems finding workers who meet those criteria because the demand for them is so high. While sitting in your office, your teammate, Alejandra, walked to your office and said, "Have you heard the recent news about the economy? They said that investment has declined, and government spending has declined too. They also said that GDP is expected to shrink in the next 6 to 10 months. I wonder what is next." Then, she looked at you and said: How…

Answer 2

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Answer 6

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Answer 7

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Answer 8

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 2 - Prob. 1.1P Ch. 2 - Prob. 1.2P Ch. 2 - Prob. 2.3P Ch. 2 - Prob. 2.4P Ch. 2 - Prob. 3.5P Ch. 2 - Prob. 3.6P Ch. 2 - Prob. 3.7P Ch. 2 - Prob. 3.8P Ch. 2 - Prob. 4.9P

Explanation of Solution

Want to see more full solutions like this?

Chapter 2 Solutions