Assume you have purchased a $15,000 car. The salesperson has offered you a mainenance contract covering all major repairs for the next 3- years, with some exclusions, for $ 750. a. What is the opportunity cost of purchasing that maintenance contract? b. What information would you nced to make a decision based on the cconomic decision rule? c. Based upon that information how would you make your decision?

Assume you have purchased a $15,000 car. The salesperson has offered you a mainenance contract covering all major repairs for the next 3- years, with some exclusions, for $ 750. a. What is the opportunity cost of purchasing that maintenance contract? b. What information would you nced to make a decision based on the cconomic decision rule? c. Based upon that information how would you make your decision?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 23CTQ: Do economists have any particular expertise at making normative arguments? In other words, they have...

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