You are deciding what to do for a weekend. You have narrowed down your options t

Question

You are deciding what to do for a weekend. You have narrowed down your options to two choices.

One choice is to go to the football game on Saturday. You do not currently have a ticket, but value going to the game at $85.

The other choice is to take a weekend getaway trip. You value the trip at $235. It will cost you $190 (all costs) to go on the trip.

What is the maximum amount you would be willing to pay for a ticket to the football game? In other words, what is the most that a ticket could be priced at and still have you choose the football game over going on the trip?

Explanation / Answer

value going to the game = $85

value of the trip = $235

cost of the trip = $190

Benefit = 235 - 190 = $45

Price of the game ticket = $85 - $45 = $40

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