Examples of sunk costs

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Please answer the below questions

Q1. Lashed is a college student and lives off a budget of $100/week. She spends all of it on Chipotle meals and/or Starbucks. Her Chipotle meal costs her $10 and her Starbucks bucks drink costs her $6. Calculate the opportunity costs of one of her Starbucks drinks in terms of Chipotle meals. Write your answer as a whole number or using decimals. For instance, 2, 3, 0.4, 0.8, 1.5, etc.

Q2. Let's say your estimated cost of attending college is $100,000 for tuition, books, and added transportation costs. After taking one class, you realized that you did not take into account the opportunity costs of attending college. What else would you have to consider in order to have a true cost of attending college? Briefly explain your answer.

Q3. Give one example of sunk costs. What is the best way to deal with this situation according to economists?

Reference no: EM133267156

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