Say the day of the concert for which you had bought tickets almost a month you find yourself very ill. Since you paid almost $40 for the tickets, you are considering whether to go to the concert anyway. Rational choice theory says that you should go to the concert only if:

Question

Quizplus · Accepted Answer

Rational choice theory states that an action should be taken only if the benefits outweigh the costs. In this case, the cost is the discomfort of getting out of bed while being sick. The benefit is the enjoyment of the concert. As such, the benefits of going to the concert should be greater than the discomfort of getting out of bed while being sick in order for it to be a rational choice. The cost of the ticket ($40) is not relevant in this scenario, as it is a sunk cost (i.e. non-refundable). Therefore, Option C is the best choice as it focuses solely on the benefits and costs at play in this situation.

Say the Day of the Concert for Which You Had