Buy custom Cost descriptor memo
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
3 / 629 |
Essay's paper body
A firm, which has incurred in high sunk costs, will have difficulties in deciding to exit the market even if it sees good opportunities outside. For example, pre-ordering non-refundable t-shirts, the price of the t-shirts becomes a sunk cost. Even if the shirt-buyer decides it is too cold to wear t-shirts and wants sweaters, there is no way to get back the money originally paid (Arkes 1999)...
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For example, this firm pays actual salaries to employees, the employees are accounted for and payment is definite and cost is actual. The firm has the opportunity to reduce those costs by firing HR managers that are unproductive thus the opportunities to save and minimize costs are available (Piana 2003)...
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General points of the essay
A Review of the Literature on the Topic of Market Orientation and the Firm with reference to three articles.
Check 21-The Float has sunk
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