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Suppose UM sells student tickets to football games for $6 each, but you must wait in line for a half-hour to obtain a ticket. Further suppose that scalping is made legal in Florida. Non-student fans are willing to pay you $20 for your ticket. Attending the game will take approximately four hours. Suppose you have a part-time job where you can choose your own hours, which pays $8/hour.
a) What is your economic cost of buying a ticket?
b) What is your economic cost of attending the game (once you already bought the ticket)?
c) If you know you will have to work the day of the game, should you buy a ticket in order to resell it?
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