Stella has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Patrick, whom Stella has wanted to date for a long time, asks her to a concert. Stella would prefer to go to the concert with Patrick and forgo the opera, but she doesn't want to waste the $100 she spent on the opera ticket. From the perspective of an economist, if Stella decides to go to the opera, what has she just done? Incorrectly allowed a sunk cost to influence her decision Correctly ignored a sunk cost Made an optimal choice

Stella has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Patrick, whom Stella has wanted to date for a long time, asks her to a concert. Stella would prefer to go to the concert with Patrick and forgo the opera, but she doesn't want to waste the $100 she spent on the opera ticket. From the perspective of an economist, if Stella decides to go to the opera, what has she just done? Incorrectly allowed a sunk cost to influence her decision Correctly ignored a sunk cost Made an optimal choice

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 8PA

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