Suppose that you recently bought a new formal outfit for a dedication dinner at Union Station, costing $200. You also bought tickets to this event that cost $1,000. Because the outfit has been altered, you cannot return it, and the tickets are non-refundable. The week before the event, your favorite band announces a surprise free concert, and because this is an obscure band, you are guaranteed to get in (that is, the free concert will not sell-out). Assume that the price of an Uber ride to concert and to Union Station is identical. Further, assume that you wouldn’t have to purchase any new clothes to attend the concert. You should go see the concert if:A) The marginal value of the concert is greater than $200B) The marginal value of the concert is greater than $1,200C) The marginal value of the concert is greater than the marginal value of attending the Law School dedication dinnerD) The marginal value

Question
Asked Oct 16, 2019

Suppose that you recently bought a new formal outfit for a dedication dinner at Union Station, costing $200. You also bought tickets to this event that cost $1,000. Because the outfit has been altered, you cannot return it, and the tickets are non-refundable. The week before the event, your favorite band announces a surprise free concert, and because this is an obscure band, you are guaranteed to get in (that is, the free concert will not sell-out). Assume that the price of an Uber ride to concert and to Union Station is identical. Further, assume that you wouldn’t have to purchase any new clothes to attend the concert. You should go see the concert if:

A) The marginal value of the concert is greater than $200
B) The marginal value of the concert is greater than $1,200
C) The marginal value of the concert is greater than the marginal value of attending the Law School dedication dinner
D) The marginal value

check_circleExpert Solution
Step 1

Marginal value is the marginal benefit over marginal cost. So, it is the benefit that is received over the cost you paid for the additional service. Here, if the marginal value of the concert is greate...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour*

See Solution
*Response times may vary by subject and question
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Classify each of the following statements as positive or nomative.Expalin. a. Society faces a short-...

A: Positive statements are based on facts and cause-effect relationships while normative statements are...

question_answer

Q: 1. Depreciation and Appreciation of currency. a. Please thoroughly and completely explain how the US...

A: Depreciation of currency is a decline in the value of one country currency in terms of another count...

question_answer

Q: I have attached dat from problem 1 to help answer number 2

A: At the air quality level 5, the person can buy 4 bars of soap at price $1. The marginal utility per ...

question_answer

Q: A new business venture must develop a comprehensive business plan if it hopes to acquire start-up fu...

A: Yes, in order to get start-up funding a business must develop a plan stating the goals and objective...

question_answer

Q: Jane, who works for the economic research department in a multinational corporation, is preparing a ...

A: The income elasticity of demand shows the responsiveness of quantity demanded due to change in incom...

question_answer

Q: Define the equilibrium of a market. Describe the force that move a market towards its equilibrium.

A: The market equilibrium is the point where the market demand as well as the market supply is equal. W...

question_answer

Q: Consider the graphical representation of the Keynesian cross for a hypothetical country, where the p...

A: Click to see the answer

question_answer

Q: Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,0...

A: Answer - From the table we can see that price of per ticket is fixed . By the definition of elastici...

question_answer

Q: Hi! Can you help me with the question below?  Todd has a job that presents zero risk of death or inj...

A: Current salary - $50000 with no riskIf takes up new job the annual salary will be $55000 with a risk...