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.

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.

the correct answer is - no.

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