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Author Question: Kevin is re-finishing an antique grandfather clock that he purchased at a flea market for $300. He ... (Read 106 times)

Jramos095

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on: May 24, 2019
Kevin is re-finishing an antique grandfather clock that he purchased at a flea market for $300. He expects to be able to sell the clock for $450. At the last minute, Kevin discovers that he needs to repair the gears at a cost of $175 to make the clock worth $450 to potential buyers. It turns out that he could also sell the clock now, without completing the additional repairs, for $250. What should Kevin do?
◦ He should sell the clock now for $250.
◦ He should keep the clock but not make the repairs since the original $300 is a sunk cost.
◦ He should complete the additional repairs and sell the clock for $450.
◦ He should keep the clock after making the repairs since it is not rational to spend a total of $475 on an item that can only be sold for $450.
◦ Kevin is indifferent between selling the clock as is or selling it after completing the repairs.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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Marked as best answer by Jramos095 on May 24, 2019

jessofishing

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Reply #1 on: May 24, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Jramos095

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Reply #2 on: May 24, 2019
TY


jessofishing

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Reply #3 on: May 24, 2019
You're welcome


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