Suppose you have purchased a nonrefundable plane ticket. At the last moment, you cannot take the trip but can still sell the ticket. The cost of sending the ticket to someone through overnight mail is $20, and you have to spend $10 on a courier to get the ticket to the post office for overnight delivery. If you paid $700 for the ticket, which of the following is the minimum amount you should accept for the ticket?
A) $700, because that is what the ticket costs
B) $720, because that is the sum of the cost of the ticket and the cost of sending it to the buyer
C) $730, because that is the sum of the cost of the ticket and the cost of sending it to the buyer
D) More than $730, so that you can make a profit
E) $30, because the $700 is a sunk cost
Correct Answer:
Verified
Q21: Table 2.1 Q22: Table 2.2 Q23: Table 2.1 Q24: Table 2.2 Q25: The law of comparative advantage says that
