Kyle receives two free passes to the symphony as a bonus at work. He has never been to the symphony before and would probably not buy such tickets for their face value of $120. Kyle decides to use the tickets rather than sell them at face value. This type of behavior is:

A. irrational, since Kyle would not pay $120 for the tickets, yet gives up $120 by not selling them.
B. rational, since Kyle can check out the symphony and not have to pay for it himself.
C. irrational, since Kyle ignores his sunk cost of $120.
D. rational, since Kyle does not ignore his sunk cost of $120.


A. irrational, since Kyle would not pay $120 for the tickets, yet gives up $120 by not selling them.

Economics

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