Econ1p91 assignment 1 - Study guides, Class notes & Summaries

1. Stan buys a 1966 Mustang, which he plans to restore and sell. He anticipates that the cost of the car and the repairs will be $15,000 and that he can sell it for $19,000. When he has spent $15,000, he discovers he needs to replace the engine, which will cost $4000. He can sell the car without the new engine for $9000. What should Stan do? a. He should complete the repairs and sell the car for $19,000. b. He should sell the car now for $9000. c. He should never try such an expensive proj...