Suppose that Alex's benefit to the game is $128. Suppose further that Alex already bought a ticket (price of $80). Finally, suppose his non-refundable ticket has no resale value. Suppose that Alex's boss is considering paying a raise to Alex if he goes to work. Which of the following is true? (select all that apply)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Suppose that Alex's benefit to the game is $128. Suppose further that Alex already bought a ticket
(price of $80). Finally, suppose his non-refundable ticket has no resale value.
Suppose that Alex's boss is considering paying a raise to Alex if he goes to work. Which of the
following is true? (select all that apply)
If Alex receives a $80 raise, then he will be indifferent between going to work and going to the game.
If Alex does not get a raise, then he will definitely go to the game.
If Alex receives a $60 raise, then he will NOT go to the game.
I Alex receives a $100 raise then he will NOT go to the game.
Transcribed Image Text:Suppose that Alex's benefit to the game is $128. Suppose further that Alex already bought a ticket (price of $80). Finally, suppose his non-refundable ticket has no resale value. Suppose that Alex's boss is considering paying a raise to Alex if he goes to work. Which of the following is true? (select all that apply) If Alex receives a $80 raise, then he will be indifferent between going to work and going to the game. If Alex does not get a raise, then he will definitely go to the game. If Alex receives a $60 raise, then he will NOT go to the game. I Alex receives a $100 raise then he will NOT go to the game.
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