You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. (Assume that you would not have been willing to pay any more than $35 for this concert.) Your boss called and she is looking for someone to cover a shift on Saturday at the same time as the concert. You will have to work 4 hours and she will pay you time and a half, which is $9/hr. Should you go to the concert instead of working Saturday?

Question

Quizplus · Accepted Answer

If you attend the concert, you will lose the $35 you paid for the ticket, and you will also lose the opportunity to earn money by covering the shift. By working instead of going to the concert, you will earn $54 (4 hours at $9/hour with time and a half), which is more than the $35 you paid for the ticket. Therefore, the benefit of working is greater than the cost, and it is the better choice.

You Paid $35 for a Ticket (Which Is Non-Refundable) to See