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Answers should be in exact numbers. Assuming there are no additional costs (food, popcorns, etc...) when at the movies. 2. Luisa is trying to decide

Answers should be in exact numbers. Assuming there are no additional costs (food, popcorns, etc...) when at the movies.

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2. Luisa is trying to decide what to do on Saturday night. Earlier in the week she bought a ticke for a Saturday night movie showing, which cost $10. However, she just learned that there is a concert she could go to instead, tickets for which would cost $50. She estimates that going to the movies would bring her $20 worth of enjoyment and going to the concert would bring her $75 worth of enjoyment. Assume that there are no other costs or benefits. A) What sunk costs are associated with going to the movies? Explain. B) What is the marginal cost of going to the movies? Explain. C) What is the marginal benefit of going to the movies? Explain. D) Should she go to the movies? Explain why or why not

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