Suppose you are considering going to the movies and You place a S12 value on your anticipated enjoyment ofthe movie The ticket price is S6 and you would be giving Up two hours of work where You earn S5 per hour You would go to
work; the opportunity cost of the movies exceeds the expected benefit
the movies; your incentive is the $6 excess expected benefit:
the movies; vour enjoyment will exceed the lost wages by $2.
the movies; the benefit of $18 exceeds the lost wages