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.

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