Suppose you pre-ordered a non-refundable movie ticket to X-Men: Days of Future Past.On the day of the movie you decide that you would rather not go to the movie.According to economists,what is the rational thing to do?
A) Since the cost of the movie ticket is a sunk cost, it should not influence your decision. Your decision should be based solely on whether you want to see the movie or not.
B) You should not waste resources. Since you have paid for the ticket you should watch the movie.
C) Your should go to the movie to minimize your losses.
D) You should go to the movie to maximize your utility.

Question

Quizplus · Accepted Answer

Since the cost of the movie ticket is a sunk cost, it should not influence your decision. Your decision should be based solely on whether you want to see the movie or not. Rational decision-making involves considering the marginal benefits and costs of a decision, not sunk costs that cannot be recovered. Therefore, if you do not want to go to the movie, it is rational to not go, regardless of the fact that the ticket was already purchased.

Suppose You Pre-Ordered a Non-Refundable Movie Ticket to X-Men: Days