This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.
Opportunity cost is the cost of the next best alternative. As the $10 could have been invested in a bank with interest, $10 is the opportunity cost.
Sunk costs are the costs that cannot be recovered and $10-$9 = $1 per pipe is the sunk cost....
This is only a preview of the solution. Please use the purchase button to see the entire solution