Suppose You Pre-Ordered a Non-Refundable Movie Ticket to Avengers: Infinity

question 226

Multiple Choice

Suppose you pre-ordered a non-refundable movie ticket to Avengers: Infinity War. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do?

• A) Since you do not want to go to the movie and the cost of the movie ticket is a sunk cost, how much you paid for the ticket should not influence your decision.
• B) You should not waste resources. Since you have paid for the ticket you should watch the movie.
• C) Your should go to the movie to minimize your losses.
• D) You should go to the movie to maximize your utility.

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Definitions:

Drive Pinion

The smaller gear in a gear set that transfers motion to the larger gear or gear rack, frequently used in steering systems and differentials.

Ring Gear

A large gear that interacts with the starter motor's pinion gear to start an engine or as part of the differential in vehicles to power the wheels.

Two-speed Axles

Axle configurations allowing a vehicle to switch between two gear ratios, optimizing performance and fuel efficiency.

Double-reduction

A gear arrangement in transmissions that uses two sets of gears to significantly reduce the input speed, providing increased torque.