Assume that Sarah places a $70 value on seeing her college football team play in the finals. She purchases a ticket to the game for $50 but when she arrives at the game she discovers that her ticket is missing. A ticket scalper outside the stadium is selling tickets for $65 dollars. If Sarah purchases a ticket from one of the scalpers for $65, what principle is she best demonstrating?

Question

Answer

The lost ticket is the opportunity cost of the game.

Answer

Sunk costs are irrelevant to many personal decisions.

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The assumption of rational behaviour does not easily apply to the purchase of college football game tickets.

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none of the above

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The price of tickets cannot be explained by economic principles.

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Assume that Sarah places a $70 value on seeing her college football team play in...

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