- Should You Advertise Your Car Again Explain Your Answer With Sufficient Detail As To Why You Make The Economic Decision 1 (65.51 KiB) Viewed 16 times
Should you advertise your car again? Explain your answer with sufficient detail as to why you make the economic decision
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answerhappygod
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Should you advertise your car again? Explain your answer with sufficient detail as to why you make the economic decision
Should you advertise your car again? Explain your answer with sufficient detail as to why you make the economic decision. I encourage you to apply the concepts of marginal analysis, cost-benefit, and sunk cost in your analysis.
Anna was given a nice, newer model car by a relative and now wishes to sell her old car. The car is worthless to her, but she expects she can sell it for $1,000 with some aggressive advertising. She decides to spend $500 on advertisements in her local newspaper (Gainesville Times). Unfortunately, the car does not sell despite her bold tactics. After the ad expires, she tells her sad story to a friend. He responded, "I know why your car didn't sell. You advertised in the wrong newspaper. If you run the same number of ads in the Tradin' Post Buyer's Guide then the car is certain to sell. The friend is so confident that he says "I guarantee it will sell for $1,000 or I'll pay you the money out of my own pocket!" Anna says, "Great, thanks for the advice but what will it cost me to run the same number of ads in the Tradin' Post Buyer's Guide?" He answers, "$800." Should you advertise your car again? Explain your answer with sufficient detail as to why you make the economic decision. I encourage you to apply the concepts of marginal analysis, cost-benefit, and sunk cost in your analysis.
Anna was given a nice, newer model car by a relative and now wishes to sell her old car. The car is worthless to her, but she expects she can sell it for $1,000 with some aggressive advertising. She decides to spend $500 on advertisements in her local newspaper (Gainesville Times). Unfortunately, the car does not sell despite her bold tactics. After the ad expires, she tells her sad story to a friend. He responded, "I know why your car didn't sell. You advertised in the wrong newspaper. If you run the same number of ads in the Tradin' Post Buyer's Guide then the car is certain to sell. The friend is so confident that he says "I guarantee it will sell for $1,000 or I'll pay you the money out of my own pocket!" Anna says, "Great, thanks for the advice but what will it cost me to run the same number of ads in the Tradin' Post Buyer's Guide?" He answers, "$800." Should you advertise your car again? Explain your answer with sufficient detail as to why you make the economic decision. I encourage you to apply the concepts of marginal analysis, cost-benefit, and sunk cost in your analysis.