Question

You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a very good show and place only a $10 value on seeing the remainder of the show. Alternatively you could leave the theater and go home and watch TV or read a book. You place an $8 value on watching TV and a $6 value on reading a book. A. You should go home and watch TV.B. You should go home and read a book.C. You should stay and watch the remainder of the show.D. You should go home and either watch TV or read a book.

Answer 1

Answer:

C. You should stay and watch the remainder of the show.

Explanation:

Here cost of watching the play = $30

Value of seeing the remainder = $10

Value of watching TV = $8

Value of reading a book = $6

Now since the price of ticket is non refundable, $30 is paid, even if the play is left in between, $30 is gone.

In all the cases least cost will be $30

After which if the book is read value = $6

In case of watching TV value = $8

In case of watching the remainder show value = $10

Since maximum value of watching remainder show is maximum with least cost it shall we continued.

Final Answer

C. You should stay and watch the remainder of the show.