500
John is deciding whether or not he should pay $10 for a movie ticket to see Transformers 20. John will aggregate all of the perceived benefits of buying the ticket which may include, among others: (1) Some level of pleasure or value derived from the entertainment of the movie; (2) some level of pleasure or value derived from a shared experience with his friends; (3) having a legitimate excuse to avoid the party John’s parents wish him to attend with their friends. John will also aggregate all of the perceived costs, which may include, among others: (1) The loss of $10; (2) the loss of approximately two hours of time which could have been used for other purposes; (3) the shame of supporting Michael Bay. John arrives at the following values: benefits: (1) + 10 units of utility (utils), (2) +20 utils, (3) +10 utils. Costs: (1) -10 utils ,(2) – 15 utils, and (3) -10 utils Will John choose to see the movie?
Yes, the final expected value for John in seeing the movie is positive (40 utils – 35 utils = 5 utils).