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Neema Has Just Spent One Hour Roller Skating with Her

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Question 73
Multiple Choice
arrowQuestion 73arrow
Multiple Choice

Neema has just spent one hour roller skating with her friends and is trying to decide whether to skate for another hour. Each hour of roller skating costs $7, plus a one-time skate rental fee of $6. Skating for another hour will make Neema one hour late for her job, where she earns $13 per hour. Which of the following statements is true?
I. The $6 skate rental fee is a sunk cost.
II. The opportunity cost of skating for one more hour is $13.
III. Neema should keep skating if the value she places on skating for one more hour is at least $20.


A)I only
B)II only
C)I and III only
D)I, II, and III

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