There are 2 sellers in the market. Jane sells high quality cars that costs her 10,000 dollars and consumers are willing to pay 14, 000 for them. Mary sells low quality cars. She buys them at 6,000 dollars and consumers are willing to pay 10,000 for them. A warrant costs Jane 600t and costs Mary 1200t, where t is number of warranty years. What year warranty should Jane set to prevent Mary from matching her offer? * None of the above 1.5 O 3.33 O 1.67 O 2
There are 2 sellers in the market. Jane sells high quality cars that costs her 10,000 dollars and consumers are willing to pay 14, 000 for them. Mary sells low quality cars. She buys them at 6,000 dollars and consumers are willing to pay 10,000 for them. A warrant costs Jane 600t and costs Mary 1200t, where t is number of warranty years. What year warranty should Jane set to prevent Mary from matching her offer? * None of the above 1.5 O 3.33 O 1.67 O 2
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 18P
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Question
Transcribed Image Text:There are 2 sellers in the
market. Jane sells high quality
cars that costs her 10,000
dollars and consumers are
willing to pay 14, 000 for them.
Mary sells low quality cars. She
buys them at 6,000 dollars
and consumers are willing to
pay 10,000 for them. A
warrant costs Jane 600t and
costs Mary 1200t, where t is
number of warranty years.
What year warranty should
Jane set to prevent Mary from
matching her offer? *
None of the above
O 1.5
3.33
O 1.67
O 2
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