According to the principle of sunk costs:

Question 1 options:

	A. A person deciding whether to walk out of a movie should take into account how much was spent on the ticket.
	B. A person deciding whether to walk out of a movie should *not* take into account how much was spent on the ticket.
	C. A firm deciding whether to produce computers, using chips that it has already purchased, should take into account the current resale value of the chips.
	D. A firm deciding whether to produce computers, using chips that it has already purchased, should *not* take into account the current resale value of the chips.

Question 2 (1 point)

If someone is considering the cost of a professional athletic career, the future cost of traveling to competitive events is:

Question 2 options:

	A. A sunk cost.
	B. A direct cost.
	C. An excess cost.
	D. An opportunity cost.

Question 3 (1 point)

A bottling company paid $50,000 for a new machine to be installed on a new assembly line. If the firm does not build the assembly line, then it has no other use for the machine. It can return the machine to the manufacturer, but the manufacturer will pay only $30,000 for the returned machine. In this situation, the opportunity cost of the machine is:

Question 3 options:

	A. $0.
	B. $20,000.
	C. $30,000.
	D. $50,000.

Question 4 (1 point)

Suppose that a firm is considering a production process which would use the following resources: $100 in parts already purchased that have no alternative use; $400 in parts already purchased that could be resold for $300 if not used; $200 in parts not yet purchased. Which of these values should be added together to determine the total economic cost of production (check all that apply)?

Question 4 options:

	A. $100
	B. $200
	C. $300
	D.$400

PLease give explanation of each question