Comparing marginal benefit and marginal cost

Reference no: EM13269871

Americans spend almost $25 billion per year on lottery tickets ($150 per person). Most Americans, however, also show evidence of risk aversion in other aspects of their behavior such as buying automobile, home, and life insurance. Why might Americans spend so much on legalized gambling if they also are typically risk averse? Use the concept of marginal thinking of comparing marginal benefit and marginal cost.

Reference no: EM13269871

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