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1. Suppose you paid $300 to take this economics course which meets 30 times for one hour a class. Instead of attending class you could either flip hamburgers for $5 an hour or wait tables for $7 an hour.
a. What is the opportunity cost of attending each class? (Hint: think about the definition of opportunity cost.) EXPLAIN your answer.
b. What is the sunk cost in this example?
2. Are the costs described in 10 a and b direct (explicit) or indirect (implicit) costs? How do you know?
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