Economic Education For Consumers
Economic Education For Consumers
4th Edition
ISBN: 9780538448888
Author: Roger LeRoy Miller, Alan D. Stafford
Publisher: Cengage Learning
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Chapter 3.3, Problem 11TC
To determine

A letter to State Attorney General regarding bait and switch policy.

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Customer retention
After graduating, you start work as a management consultant. You are paid $210 per hour. One morning before work, you decide to buy a new car. You know the exact model you want, and you know that in your area the price ranges from $39,000 to $41,000, with the average price you can expect to pay being $40,000. You can choose among hundreds of dealers, but you don't know which dealer will give you the best price. Time is literally money, since every hour you spend searching is an hour you don't get paid. Each visit to a dealer takes an hour. Your expected marginal benefit of another search is the difference between the current dealer's offer and the average price. The first dealer you go to asks $40,500 for the car. Should you accept the price or keep searching? (Keep in mind that each visit to a dealer takes an hour.) Keep searching. Accept the price. Suppose you kept searching, and the next dealer you go to asks $40,150. Do you think you should accept this price or keep searching? O…
Create a sale pitch for the Railroad in the 1800s. the presentation must be something that will hook the audience and convince them to invest in your product and why they should invest in your product. How mush will be your product.
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