Question

You are considering whether you should go out to dinner at a restaurant with your friend. The meal is expected to cost you $50, you typically leave a 20% tip, and a round-trip Uber ride will cost you $15. You value the restaurant meal at $30 and the time spent with your friend at $50. You should ____ to dinner with your friend because the benefit of doing so is _____ than the cost.

Answer 1

Kindly check explanation

Step-by-step explanation:

Expected cost = $50

Tip = 20% = (0.2 * $50) = $10

Round trip transportation = $15

Total cost = ($50 + $10 + $15) = $75

Benefit derived from going to dinner :

Value of meal = $30

Valuation of time spent = $50

Total value of benefit = ($30 + $50) = $80

Since, the benefits exceed the cost, $80 > $75

Then, You should __go__ to dinner with your friend because the benefit of doing so is __greater___ than the cost.