The "generalised price" of a ticket is the sum of the monetary price of the ticket (the amount you pay in dollars) plus the other costs of obtaining that ticket (such as waiting in line).It can be written as:
Generalised Price = Monetary price + time standing in line.Suppose everyone has the same opportunity cost of time.If there are laws against scalping, will tickets go to those individuals who value the ticket the most when we use generalised price? (HINT: Suppose there is one ticket left for a concert for $40, and person A values that ticket at $50 and person B at $60.Who will buy the ticket?)
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