Carol has spent $2,000 purchasing and repairing an old car, which she expects to sell for $2,400 once the repairs are complete. She discovers that she needs an additional repair, which will cost $400, in order to complete the repairs. She can sell the car as it is now for $2,000. What should she do?
A) She should cut her losses and take the $2,400.
B) She should never sell something for less than it cost.
C) She should complete the repairs and sell the car.
D) It doesn't matter which action she takes; the outcome is the same either way.
Correct Answer:
Verified
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