Mike has spent $500 purchasing and repairing anold guitar, which he expects to sell for $800 oncethe repairs are complete. Mike discovers that, inaddition to the $500 he has already spent, heneeds to make an additional repair, which will costanother $400, in order to make the guitar worth$800 to potential buyers. He can sell the guitar asit is now for $300. What should he do?

here we can find the answer of given question by following method given below;

Answered: heeds to make an additional repair,…

heeds to make an additional repair, which will cost another $400, in order to make the guitar worth 6800 to potential buyers. He can sell the guitar as t is now for $300. What should he do?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Mike has spent $500 purchasing and repairing an
old guitar, which he expects to sell for $800 once
the repairs are complete. Mike discovers that, in
addition to the $500 he has already spent, he
needs to make an additional repair, which will cost
another $400, in order to make the guitar worth
$800 to potential buyers. He can sell the guitar as
it is now for $300. What should he do?

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