You plan to attend a movie on Saturday night.You buy a ticket for $7 and then lose it.According to marginal analysis,you should:

A) go home.
B) buy another ticket and attend the movie.
C) buy another ticket and attend the movie only if your marginal benefit of seeing the movie is more than $14.
D) look for the lost ticket.

Question

Delaney Schaeffer · Accepted Answer

Final Answer : C, Explanation :  Marginal analysis requires comparing the marginal cost and marginal benefit of any action. In this case, the marginal cost of buying another ticket is $7, and the marginal benefit of seeing the movie depends on the individual's preference. If the marginal benefit is less than $14, it would not be worth buying another ticket. Therefore, the best choice is to buy another ticket and attend the movie only if the marginal benefit of seeing the movie is more than $14.

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