A good economist will ignore sunk costs and focus on marginal value when it comes to making right decisions. In economics and finance, a sunk cost is a cost that has already been incurred and cannot be recovered.
Sunk costs are treated as by gone costs in economic decision making and are not considered when deciding whether to continue investment project. The value of the final unit of consumption is known as the marginal value to a consumer. Value of the good to the consumer who purchased the good but received the lowest value from consumption is represented by an industry demand curve.
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