The authors attempt to clarify the concepts of, and the link between, fixed costs and sunk costs. They argue that the root for possible confusion between fixed costs and sunk costs is the inconsistency in defining the term fixed costs. They define fixed costs uniformly as the costs that are independent of the level of output and suggest that instructors refer to the part of fixed costs that are...

Some household expenditures, such as those for subsistence or basic needs, are fixed. Using the methodology of equivalence scales, we develop a model in which differences in fixed costs of characteristics across households can be identified from household behaviour. Equivalent expenditure for a household is the expenditure needed to bring a reference household, such as a single childless adult,...

An investor with constant relative risk aversion trades a safe and several risky assets with constant investment opportunities. For a small fixed transaction cost, levied on each trade regardless of its size, we explicitly determine the leading-order corrections to the frictionless value function and optimal policy.

a strategy that integrates an organization's marketing goals into a cohesive whole, ideally drawn from market research, focuses on the ideal product mix in order to achieve maximum profit potential; the marketing strategy is set out as a marketing plan, a good idea, method, information, object, or service that is the end result of a process and serves as a need or want satisfier. it is usually ...