Hello! Would you be able to professionally assess my answer for accuracy to the following question below? Thank you in advance! Question You won a ticket to a hockey playoff game by having your name drawn from a hat at a charity event. You were excited about going, but on the day of the game, a major snowstorm has hit and conditions are miserable. Would you be more likely to go if you had bought the ticket yourself instead of winning it? Relate your answer to opportunity costs and sunk costs. My Answer: If I bought the hocky playoff ticket myself and decided to stay home and not go to the game due to a major snowstorm and the resulting conditions, the opportunity cost would be watching the hockey playoff game in person. Because the ticket is already purchased, if I would be unable to resale the ticket (it may be quite difficult to resale from home the day of the game, particularly during a major storm), the price of the ticket would be a sunken cost, a past expenditure unable to be recovered. With winning the ticket instead of buying it, the opportunity cost would be the same if I decided to stay home: watching the playoff game in person. Only this time, I would not incur a sunken cost since I did not personally pay for the ticket. Because of the sunken cost that I would incur if I paid for it (being unable to resale it) and wanting to evade a financial loss, I would be more likely to go to the playoff game if I had bought the ticket myself as opposed to if I won it.
Hello! Would you be able to professionally assess my answer for accuracy to the following question below? Thank you in advance!
Question
You won a ticket to a hockey playoff game by having your name drawn from a hat at a charity event. You were excited about going, but on the day of the game, a major snowstorm has hit and conditions are miserable. Would you be more likely to go if you had bought the ticket yourself instead of winning it? Relate your answer to
My Answer:
If I bought the hocky playoff ticket myself and decided to stay home and not go to the game due to a major snowstorm and the resulting conditions, the opportunity cost would be watching the hockey playoff game in person. Because the ticket is already purchased, if I would be unable to resale the ticket (it may be quite difficult to resale from home the day of the game, particularly during a major storm), the price of the ticket would be a sunken cost, a past expenditure unable to be recovered. With winning the ticket instead of buying it, the opportunity cost would be the same if I decided to stay home: watching the playoff game in person. Only this time, I would not incur a sunken cost since I did not personally pay for the ticket. Because of the sunken cost that I would incur if I paid for it (being unable to resale it) and wanting to evade a financial loss, I would be more likely to go to the playoff game if I had bought the ticket myself as opposed to if I won it.
I won a hockey ticket.It means ticket is free and there is no cost of ticket for me.I would get to watch hockey match for free.
Therefore in this case there is no opportunity and sunk cost.
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