QUESTION 27 Mazen is refinishing an antique china cabinet and has already spent AED 180 on the restoration. He expects to be able to sell the cabinet for AED 360. Mazen discovers that he needs to do an additional AED 200 of work to make the cabinet worth AED 360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for AED 100. What should he do? OA. It does not matter which action he takes since the outcome will be the same either way. OB. He should keep the cabinet since it wouldn't be rational to spend AED 380 restoring a cabinet and then sell it only for AED 360.
QUESTION 27 Mazen is refinishing an antique china cabinet and has already spent AED 180 on the restoration. He expects to be able to sell the cabinet for AED 360. Mazen discovers that he needs to do an additional AED 200 of work to make the cabinet worth AED 360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for AED 100. What should he do? OA. It does not matter which action he takes since the outcome will be the same either way. OB. He should keep the cabinet since it wouldn't be rational to spend AED 380 restoring a cabinet and then sell it only for AED 360.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:QUESTION 27
Mazen is refinishing an antique china cabinet and has already spent AED 180 on the restoration. He expects to be able to sell
the cabinet for AED 360. Mazen discovers that he needs to do an additional AED 200 of work to make the cabinet worth AED
360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for AED 100. What should
he do?
A. It does not matter which action he takes since the outcome will be the same either way.
OB. He should keep the cabinet since it wouldn't be rational to spend AED 380 restoring a cabinet and then sell it only for
AED 360.
OC. He should complete the additional work and sell the cabinet for AED 360.
D. He should sell the cabinet now for AED 100.
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