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

question 72

Multiple Choice

Suppose you pre-ordered a non-refundable movie ticket to X-Men: Apocalypse.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)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:

Content Theories

Theories in psychology and management that explain the specific things that motivate individuals at work, focusing on the content of those motivators.

Human Needs

Fundamental physiological and psychological requirements that motivate individuals and influence their behavior.

Reinforcement Theories

Psychological theories suggesting that behavior can be shaped by controlling the consequences that follow those behaviors, often applied in organizational settings to motivate employees.

Reward Problem

Issues related to the allocation, perception, or effectiveness of rewards and incentives within an organization.