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You can't ignore operating costs because of sunk capital costs. That's the sunk cost fallacy! You can sometimes ignore sunk costs if operating revenue is good.
by reissbaker 6y ago
You can't ignore operating costs because of sunk capital costs. That's the sunk cost fallacy! You can sometimes ignore sunk costs if operating revenue is good. But if it's negative, that's the problem.
- pfdietz 6y agoI wasn't ignoring operating costs. I was pointing out you can't ignore capital and financing costs.