Publication: Journal of Economic Education
Volume: Volume 35, No. 4
Issue: Fall 2004
Pages: 365-369
Author(s): X. Henry Wang (University of Missouri) and Bill Z. Yang (Georgia Southern University)
Address (Principal Author):Bill Z. Yang
Assistant Professor of Economics
Department of Finance and Economics
Georgia Southern University
P.O. Box 8151
Statesboro, GA 30460-8151
Phone: (912) 681-5161
Fax: (912) 871-1835
Internet Address (Principal Author): billyang@gasou.edu
Title: On the Treatment of Fixed and Sunk Costs in Principles Textbooks: A Comment and a Reply
Abstract: The authors reply to Colander's comment and argue that it is logically incorrect and inconsistent to make fixed cost a synonym of sunk cost at the introductory level because distinctions are rightfully made at more advanced levels.