Sunk costs and decision making

Assignment Help Business Economics
Reference no: EM13869376

Sunk costs and decision making

Beth has plans to go to a play and already has a $50 non refundable, non exchange able, and non transfer able ticket. Now Carl, whom Beth has wanted to date for a long time, asks her to a party. Beth would prefer to go to the party with Carl and forgo the play, but she doesn't want to waste the $50 she spent on the play ticket.

From the perspective of an economist, if Beth decides to go to the play, what has she just done?

Incorrectly allowed a sunk cost to influence her decision

Made an optimal choice

Correctly ignored a sunk cost

Reference no: EM13869376

Questions Cloud

Competing concepts-production-product-selling concept : The competing concepts under which organizations have conducted marketing activities include: the production concept, product concept, selling concept, marketing concept, and the societal marketing concept. Identify examples of companies (preferably ..
Describe equilibrium price and quantity : Describe equilibrium price and quantity, and explain and illustrate with two supply and demand graphs how a change in supply and a change in demand affect the equilibrium point. Define price elasticity of demand in your own words, and provide example..
Difference between demand and quantity demanded : Explain the concept of supply and demand in your own words and provide two examples of how you see it at work: one from the news and one from personal experience. State the difference between demand and quantity demanded, as well as the difference be..
Discuss the merits of relationship marketing : Increasingly, a key goal of marketing is to develop deep, enduring relationships with all people or organizations that could directly or indirectly affect the success of the firm’s marketing activities. Discuss the merits of relationship marketing. D..
Sunk costs and decision making : Beth has plans to go to a play and already has a $50 non refundable, non exchange able, and non transfer able ticket. Now Carl, whom Beth has wanted to date for a long time, asks her to a party.
Lotteries and expected utility : Lotteries and expected utility. An expected utility maximizing decision maker declares that he prefers a lottery that pays $5 and $10 with equal probability to a lottery that pays $10 with probability 3 4 , and $0 with probability 1 4 . Which would t..
Confidence on the demand for money : Confidence on the demand for money is log M=14.666+.021logC-.036log r m- real money balance c consumer confidence r is interest rate paid on bank deposit. Based on this study How 5% increase impact the demand for money a .Increase or decrease 1.8%, d..
Healthcare service conformed to model of perfect competition : Suppose the market for healthcare services conformed to the model of perfect competition presented in class, as represented in the figures below. If the government levied a $10 tax on providers for each service they provided, how would the market pri..
Find the equilibrium price and quantity for this market : Assume the market for oil is perfectly competitive, with the following market demand and supply curves: Find the equilibrium price and quantity for this market. Calculate consumer and producer surplus in the competitive equilibrium.

Reviews

Write a Review

Business Economics Questions & Answers

  What output will firm choose

What output will firm choose. What will be monopolistic competitor's average fixed cost at output it chooses.

  Way to identify family types for pricing purposes

There is no way to identify family types for pricing purposes also all costs are fixed so to maximizing total income is equivalent to maximizing profit.

  Q1 what do you mean by an institution explain how do

q1. what do you mean by an institution? explain how do institutions influence economic life? also explain how does

  Equilibrium price-quantity and price elasticity of demand

The demand for a product is Qd = 100 - 4P +3Px and supply is Qs = 10 +2P, where Q is the quantity of the product in thousands of units, P is the price of the product, and Px is the price of another good. When Px = 40, the equilibrium price of the pro..

  What information would a government needs to increase

What information would a government needs to increase the probability that its industrial policy would promote long-term self-generated economic growth.

  Calculate the cost elasticity of demand

Calculate the cost elasticity of demand as well as for paint as well as show your calculations.

  Which firm is more likely to be unionized

Firm A would hire 20,000 workers if the wage rate is $12 and would hire 10,000 workers if the wage rate is $15. Firm B would hire 30,000 workers if the wage is $20 and would hire 38,000 workers if the wage is $15. Which firm is more likely to be unio..

  Why the labor market is not as felxible as it used to be

Discuss several reasons why the labor market is not as felxible as it used to be? Identify and outline (in detail) the three reasons the article gives for why there might be "structural obstacles to job growth"

  Protect the farmers entitlement with a liability rule

Consider a rancher-farmer economy. Assume that the rancher has no choice over how many cows to raise but either the farmer or the rancher (or both) can build a fence to eliminate the crop damage of $150. However, the costs of installing the fence are..

  What is the cross price elasticity of the demand for apple

Using the midpoint method, what is the cross price elasticity of the demand for apple juice with regard to the price of orange juice

  Explain how much government securities should be purchased

Explain how much government securities should be purchased/sold if an open market operation is undertaken

  Describe economics and the economic perspective

Describe economics and Describe the economic perspective, including definitions of scarcity, opportunity cost, purposeful behavior.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd