Calculate selling price for the pint of beer

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Now suppose that after Mike gets his promo pint but before he decides whether to sell it, he notices that he lost $10 on the way to the pub. He does not yet incorporate this $10 loss into his reference point for cash. Calculate his selling price for the pint of beer. Explain intuitively why your answer is different from that in part (b).

Reference no: EM133131347

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