Yesterday you were unexpectedly given a free ticket to a Dave Matthews concert scheduled for April 1.
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Yesterday you were unexpectedly given a free ticket to a Dave Matthews concert scheduled for April 1. The market price of this ticket is $75, but the most you could sell it for is only $50. Today you discover that Ani DiFranco will be giving a concert that same evening. Tickets for the Ani DiFranco con-cert are still available at $75. Had you known before receiving your Dave Mat-thews ticket yesterday that Ani DiFranco would be coming; you definitely would have bought a ticket to see her, not Dave Matthews. True or false: From what we are told of your preferences, it follows that if you are a rational utility maximizer, you should attend the Ani DiFranco concert. Explain.
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Ani DiFranco Dave Matthews Benefit B p B r Cost initial 75 75 Cost final 75 50 In the problem we are ...View the full answer
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