Mimi gets a job twenty miles from her house and purchases a new car to commute. As a result of this new expense, Mimi decides to sell her season tickets to the local football stadium. Mimi's situation can be described as:

Question

Quizplus · Accepted Answer

Mimi is making a trade-off between the expense of her new car and the value of her season tickets. She has decided that the expense of the car is more important to her than the enjoyment of the football games, so she is selling her tickets. This demonstrates a rational decision-making process, not irrationality, and does not involve sunk costs or normative choices.

Mimi Gets a Job Twenty Miles from Her House and Purchases