For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your marginal cost of the 100ᵗʰ meal is:
A)$6.
B)$4.
C)$0.25.
D)$0.

Question

Quizplus · Accepted Answer

The non-refundable $600 you paid for your meal plan is a sunk cost; no matter how many meals you eat up to 150, your marginal cost is 0.

For the Fall Semester, You Had to Pay a Nonrefundable