Ian is such a big Braves fan that his benefit of seeing a Braves game is $200.He pays $100 for a ticket to see one of their playoff games.Unfortunately,he left the ticket in his jeans when he laundered them and the ticket was destroyed.According to marginal analysis,Ian should:

Question

Quizplus · Accepted Answer

Marginal analysis focuses on the additional benefits and costs of a decision. In this case, Ian's benefit from seeing the game is $200. If he buys another ticket for $100, his net benefit is still $100 ($200 benefit - $100 cost), which is a positive outcome. The sunk cost of the destroyed ticket does not factor into the marginal analysis of buying a new ticket and attending the game.

Ian Is Such a Big Braves Fan That His Benefit