Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800. He discovers that needs an additional repair, which will cost $400. He can sell the boat as it is now for $300. What should he do? Select one: O a. He should take the $300. O b. He should never sell something for less than its cost. O c. He should complete the repairs and sell the boat. Od. It doesn't matter which action he takes; the outcome is the same either way.

Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800. He discovers that needs an additional repair, which will cost $400. He can sell the boat as it is now for $300. What should he do? Select one: O a. He should take the $300. O b. He should never sell something for less than its cost. O c. He should complete the repairs and sell the boat. Od. It doesn't matter which action he takes; the outcome is the same either way.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.

Question

Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800. He discovers that he
needs an additional repair, which will cost $400. He can sell the boat as it is now for $300. What should he do?
Select one:
O a. He should take the $300.
O b. He should never sell something for less than its cost.
O c. He should complete the repairs and sell the boat.
Od. It doesn't matter which action he takes; the outcome is the same either way.
Qui
G
10

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