Suppose You Pre-Ordered a Non-Refundable Movie Ticket to X-Men: Days

question 122

Multiple Choice

Suppose you pre-ordered a non-refundable movie ticket to X-Men: Days of Future Past.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 the cost of the movie ticket is a sunk cost, it should not influence your decision. Your decision should be based solely on whether you want to see the movie or not.
• B) You should not waste resources. Since you have paid for the ticket you should watch the movie.
• C) You should go to the movie to minimise your losses.
• D) You should go to the movie to maximise your utility.

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Definitions:

Dividends

A portion of a company’s earnings distributed to shareholders, usually in the form of cash or additional shares.

Media Globalization

The worldwide integration and exchange of media content and communication technologies, fostering global connectivity and cultural exchange.

Indigenous Cultures

The customs, social practices, and ways of life of native peoples who have traditional ties to particular territories.

Media Conglomerates

Large corporations that own a variety of media companies across different types of media outlets.