The price of a ticket to the latest Broadway musical is $80. You will purchase a ticket if:

Question

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Rational decision making involves choosing an option only if the expected marginal benefit exceeds its cost. In this case, the cost of the ticket is $80, and you should choose to purchase a ticket only if the expected benefit of seeing the musical is greater than $80. Option A is incorrect as it assumes irrational behavior, option B is incorrect as it posits a scenario without a clear expected marginal benefit or cost, and option D is incorrect as it assumes that the expected marginal cost of viewing the musical is greater than $80.

The Price of a Ticket to the Latest Broadway Musical