Quote:
Originally Posted by SebC
It's a common mistake. Hawkesworth keeps talking about accounting cost ($500M), but it's economic/marginal cost ($150M) that's relevant for decision making. Of course, making this mistake shows that Hawkesworth either doesn't understand or is willfully ignoring basic economics, i.e. something you'd learn in the first month of ECON 101, if you hadn't already figured it out by common sense.
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He won't publicly comment on these numbers, but he did ask me to phone his office to get clarification.