Suppose you pre-ordered a non-refundable movie ticket to Avengers: Infinity War. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do?
A) Since you do not want to go to the movie and the cost of the movie ticket is a sunk cost, how much you paid for the ticket should not influence your decision.
B) You should not waste resources. Since you have paid for the ticket you should watch the movie.
C) Your should go to the movie to minimize your losses.
D) You should go to the movie to maximize your utility.
Answer: A
Economics
You might also like to view...
Giving up one alternative for another is called ____________ .
a. underutilization. b. a trade-off. c. human capital. d. efficiency.
Economics
U.S. sugar quotas cost each person in the U.S. thousands of dollars per year due to higher prices
Indicate whether the statement is true or false
Economics