Maybe our differences are just semantic.  It is possible because of the 
sunk costs but that is irrelevant.  The decision would be the same if it 
were dropped by space aliens.

But if this does not make my understanding clear, we don't need to go on.  
The difference is too small to be of any great import.

On Thu, Sep 03, 2009 at 08:07:22PM -0400, Ann Davis wrote:
>
> Except that the bridge at "10% of normal cost" is only possible because 
> of the sunk costs (either the owner or a seller of a 90% complete 
> bridge), and discrete vs. continuous production functions.

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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