Author Question: You go to see a movie that you believe would turn out to be amazing. The ticket costs you 20 . Once ... (Read 77 times)

Mr. Wonderful · **on:** Jul 1, 2018

You go to see a movie that you believe would turn out to be amazing. The ticket costs you 20 . Once in the theatre you realize that the movie is awful. If you leave now, you can still catch your favorite TV show. What should you do?
a. Stay and watch the movie since you paid 20 for it
b. The ticket price is now a sunk cost, you can ignore it and go home
c. Stay and watch the movie since the opportunity cost of the movie is zero
d. None of the above

Question 2

Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store it must
a. Decrease the prices on the goods sold in the store
b. Decrease the parking rates
c. All of the above
d. None of the above