Suppose that you recently bought a new formal outfit for a dedication dinner at Union Station, costing $200. You also bought tickets to this event that cost $1,000. Because the outfit has been altered, you cannot return it, and the tickets are non-refundable. The week before the event, your favorite band announces a surprise free concert, and because this is an obscure band, you are guaranteed to get in (that is, the free concert will not sell-out). Assume that the price of an Uber ride to concert and to Union Station is identical. Further, assume that you wouldn’t have to purchase any new clothes to attend the concert. You should go see the concert if: A) The marginal value of the concert is greater than $200B) The marginal value of the concert is greater than $1,200C) The marginal value of the concert is greater than the marginal value of attending the Law School dedication dinnerD) The marginal value of the concert is less than the marginal value of attenting the law school dedication dinner.
Suppose that you recently bought a new formal outfit for a dedication dinner at Union Station, costing $200. You also bought tickets to this event that cost $1,000. Because the outfit has been altered, you cannot return it, and the tickets are non-refundable. The week before the event, your favorite band announces a surprise free concert, and because this is an obscure band, you are guaranteed to get in (that is, the free concert will not sell-out). Assume that the price of an Uber ride to concert and to Union Station is identical. Further, assume that you wouldn’t have to purchase any new clothes to attend the concert. You should go see the concert if:
A) The marginal value of the concert is greater than $200
B) The marginal value of the concert is greater than $1,200
C) The marginal value of the concert is greater than the marginal value of attending the Law School dedication dinner
D) The marginal value of the concert is less than the marginal value of attenting the law school dedication dinner.
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