Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip

ECONOMICS

Multiple Choice

Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip. You can, however, sell the ticket. If you paid $700 for the ticket, the cost of sending the ticket to someone through overnight mail is $20, and you spend $10 on a courier to get the ticket to the post office for overnight delivery, what is the minimum you should accept for the ticket?

a. $700 because that is what the ticket cost.

b. $720 because that is the cost of the ticket and of getting it to the buyer.

c. $730 because that is the total cost of the ticket and getting it to the buyer.

d. More than $730, so that you can make a profit.

e. $30 because the $700 is a sunk cost.

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