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) You should go to the movie to minimise your losses.
D) You should go to the movie to maximise your utility.

Question

Quizplus · Accepted Answer

According to economists, the cost of the movie ticket is a sunk cost, meaning that it is a cost that cannot be recovered regardless of whether or not you decide to see the movie. Therefore, it should not influence your decision. Your decision should solely be based on whether or not you want to see the movie.

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