Amy spends $6,000 on remodeling a storefront that she then opens as a take-out deli. After opening her deli her business is terrible and she needs an additional $2,000 to keep the deli open. Which of the following is
true?
◦ The $6,000 Amy spent on remodeling represents a part of the total variable cost of her business.
◦ The $6,000 Amy spent on remodeling represents a sunk cost of her business.
◦ The $2,000 Amy needs to keep the deli open represents her marginal costs of production.
◦ The $2,000 Amy needs to keep the deli open represents her total fixed costs.