You plan to attend a movie on Saturday night.You buy a ticket for $7 and then lose it.According to marginal analysis,you should:

Question

Quizplus · Accepted Answer

Marginal analysis requires comparing the marginal cost and marginal benefit of any action. In this case, the marginal cost of buying another ticket is $7, and the marginal benefit of seeing the movie depends on the individual's preference. If the marginal benefit is less than $14, it would not be worth buying another ticket. Therefore, the best choice is to buy another ticket and attend the movie only if the marginal benefit of seeing the movie is more than $14.

You Plan to Attend a Movie on Saturday Night