Do theoretical cost functions have relevance in business decision making?

Context

Although not a universal statement, undergraduate studies tend to focus on the theory while graduate work moves from the theory to critique and dissection of the theory in real world application. As business decision makers, we need to discern which theory to apply, critique individual situations and determine proper courses of action. This assignment moves us to that graduate perspective.

Assignment Background

Cost theory; fixed, variable and marginal costs in the short and long run have been taught in UG economics for years. However, empirical evidence seems to refute the use of cost theory in real world decision making and misunderstanding of marginal cost and production concepts.

Consider the research question in the title, Do theoretical cost functions have relevance in business decision making?

Write a 2-3 page opinion piece that includes a synopsis of a research paper. Do you think there is enough information to support the notion that business decision makers do not use cost theory in making decisions related to production, factors of production and cost.