Trump Airlines is thinking of buying a new plane for its shuttle service. Why does the economist's

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Trump Airlines is thinking of buying a new plane for its shuttle service. Why does the economist's notion of cost suggest that Trump should consider the plane's price in deciding whether it is a profitable investment but that, once bought, the plane's price is not directly relevant to Trump's profit-maximizing decisions? In such a case of "sunk costs," which cost should be used for deciding where to use the plane?
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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