swagswagyoloswag
Member
- Joined
- Mar 13, 2015
- Messages
- 100
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- Male
- HSC
- 2015
Hi,
Question:
James has a ticket for a football match in Sydney for which he paid $45. On the day of the game he takes the train to Sydney Olympic Park, which costs him $3. When he arrives, he realizes that the game is taking place in Moore Park instead. He can take a taxi for $50 and arrive just in time for the match. Otherwise, he will miss it. Suppose James values watching the match at $70. Should he take the taxi or go home?
My tutor told me he should, while I believe he shouldn't.
So basically James is at a point where he is at a $48 deficit. Continuing, he would've spent 98$ in total for a match at $70. Meaning he thinks "Since I've already spent that much, I should logically just spend extra 50 for the match", which to me doesn't sound like an economically smart decision.
Am I wrong?
What if the taxi was $1 and he valued the match at $2?
Question:
James has a ticket for a football match in Sydney for which he paid $45. On the day of the game he takes the train to Sydney Olympic Park, which costs him $3. When he arrives, he realizes that the game is taking place in Moore Park instead. He can take a taxi for $50 and arrive just in time for the match. Otherwise, he will miss it. Suppose James values watching the match at $70. Should he take the taxi or go home?
My tutor told me he should, while I believe he shouldn't.
So basically James is at a point where he is at a $48 deficit. Continuing, he would've spent 98$ in total for a match at $70. Meaning he thinks "Since I've already spent that much, I should logically just spend extra 50 for the match", which to me doesn't sound like an economically smart decision.
Am I wrong?
What if the taxi was $1 and he valued the match at $2?
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