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Refer to SM1 Q2. Thomas has a ticket to go to a movie this Saturday. He was willing to pay $20, but he only paid $15 for it. After he bought the movie ticket his friend offered to take him out to dinner
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28 votes
28 votes
Refer to SM1 Q2. Thomas has a ticket to go to a movie this Saturday. He was willing to pay $20, but he only paid $15 for it. After he bought the movie ticket his friend offered to take him out to dinner Saturday evening. Thomas has to choose between going for the movie or a free dinner. He can resell the ticket for $10. What is the lowest value that Thomas should place on the free dinner to make him choose the free dinner rather than the movie.

User Ijaz Ahmed
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1 Answer

14 votes
14 votes

Answer:

$5 is the value for dinner.

Step-by-step explanation:

Thomas has bought the movie ticket for $15. The movie ticket can be resell at a price of $10. His friend has asked him for free dinner but the dinner will cost him $5 since he will incur a loss of $5 on the movie ticket. The lowest value is the $5 for the dinner and the maximum value is $15 for the movie. Thomas can choose between two alternatives but will go towards the lowest value.

User Sunghoon
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