Tag Archives: cost-benefit

When To Postpone Tasks And When Not To

We saw earlier a number of reasons why we postpone tasks. Some of them are reasonable, while others belong to the procrastinators. Here, we’ll look at some valid reasons to postpone a task, as well as when we should not … Continue reading

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Usefulness of Sunk Costs

In an earlier article, we defined sunk costs, and observed that attributing too much importance to sunk costs leads to the sunk cost fallacy. Is there any use at all in considering sunk costs? In some cases, yes. To see … Continue reading

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Analysis of an Ad

If you have something to sell, you need to draw buyers to your stores. Ads are one way to do this. Say you wanted to advertise your brand to people in your city. The first thing that comes to mind … Continue reading

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Marginal Costs

A marginal cost is an incremental cost to be paid for an incremental good or service, in addition to the primary costs incurred, which are typically much larger. For example, if you buy a home, then you incur an upfront … Continue reading

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Long Term Gains

Consider the choice of buying a car. In this argument, car A is fuel-guzzling, but cheap, whereas car B is fuel-efficient, but costly. This is a typical situation we face, where we have to decide between short-term and long-term gains. … Continue reading

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A Simple Pricing Mechanism

What are the factors which determine the selling price of a particular good? This is something we wonder from time to time, mainly when we have to pay for something. “Movie tickets are really costly these days.” “Smart-phones are getting … Continue reading

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Punctuality

Why do people come late? People complain about this problem often, so it definitely seems to be quite prevalent. My own experience confirms this as well. I have gone late to several meetings, as well as gone early and had … Continue reading

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