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 $12 value on reading a book.
A)You should stay and watch the remainder of the show.
B)You should go home and watch TV.
C)You should go home and read a book.
D)You should go home and either watch TV or read a book.

Question

Quizplus · Accepted Answer

The $30 spent on the ticket is a sunk cost and should not influence the decision. Reading a book has the highest value ($12) compared to the value placed on watching the remainder of the show ($10) or watching TV ($8).

You Purchase a $30, Nonrefundable Ticket to a Play at a Local