Final answer:
The higher income foregone by staying in a dead-end job instead of pursuing further education is an example of an opportunity cost, which represents the potential benefits lost when selecting one option over another.
Step-by-step explanation:
The higher income that would not be realized in future years as a result of staying in a dead-end job rather than returning to school to complete a degree is an example of an opportunity cost. Opportunity costs refer to the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. In contrast, a sunk cost is a cost that has already been incurred and cannot be recovered. A marginal cost is the cost of producing one additional unit of a good, whereas a fixed cost does not change with an increase or decrease in the amount of goods or services produced.
Considering Selena's situation, the money she has already spent on the movie ticket is a sunk cost, and her decision to stay or leave should be based on the opportunity cost of her time. If Selena decides to stay and finish watching the movie, she is foregoing the chance to engage in a more enjoyable or productive activity. This scenario highlights the importance of evaluating the marginal benefits and costs of current and future options, rather than focusing on costs that have already been incurred.