Cole is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the cabinet for $360 . Cole discovers that he needs to do an additional $200 worth of work to make the cabinet worth $360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for $100 . What should Cole do?
a. He should sell the cabinet now for $100.
b. He should keep the cabinet since it wouldn't be rational to spend $380 restoring a cabinet and then sell it for only $360.
c. He should complete the additional work and sell the cabinet for $360.
d. It does not matter which action he takes since the outcome will be the same either way.
c
You might also like to view...
What are the rationales for protectionist policies?
What will be an ideal response?
A nation with a trade surplus will necessarily have saving that is greater than domestic investment
a. True b. False Indicate whether the statement is true or false
Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?
a. Adam but not Amanda b. Amanda but not Adam c. both Adam and Amanda d. neither Amanda nor Adam
The Great Moderation refers to
a) Dramatic fall in business cycle volatility that occurred from the mid-1980s to the mid-2000s b) The general fall in business cycle volatility after the second world war c) The fall in global output that occurred after 2007 d) Improved monetary policy since the mid-1980s e) Improved fiscal policy since the mid-1980s