Homework Clinic
Social Science Clinic => Economics => Topic started by: storky111 on Jun 29, 2018
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Suppose you pre-ordered a non-refundable movie ticket to X-Men: Apocalypse. 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) You should go to the movie to maximize your utility.
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) Since the cost of the movie ticket is a sunk cost, it should not influence your decision. Your decision should be based solely on whether you want to see the movie or not.
Question 2
The minimum point on the average variable cost curve is called the loss-minimizing point.
Indicate whether the statement is true or false
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Answer to Question 1
D
Answer to Question 2
FALSE
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Correct answers!
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Great! Please up vote :D