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They have already paid an entry fee at the door, which simultaneously serves as an opportunity cost, since the $20 cover charge could have been spent on next week’s dinner or some new pairs of long needed underwear. Earlier in the night, the group also incurred sunk costs: a previously incurred and irreversible cost such as the dinner bill at Red Robin, and the gas used driving to Denver to find the club...
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Earlier in the night, the group also incurred sunk costs: a previously incurred and irreversible cost such as the dinner bill at Red Robin, and the gas used driving to Denver to find the club. Since the group has already paid the cover fee, and the sunk costs of dinner and gas, it is now beneficial to stay at the club, socialize, and enjoy a few drinks...
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