Charles paid $12 for a ticket to see the Blue Jays play baseball at the Rogers Centre. Once inside, he must decide whether or not he wants to pay $8 for a beer. Buying a beer would be a smart decision only if Charles gets benefits of at least

Question

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The benefit Charles needs to gain from buying the beer must at least equal its cost, which is $8, to make it a smart decision. The cost of the ticket is a sunk cost and irrelevant to this decision.

Charles Paid $12 for a Ticket to See the Blue