You are given an old car by your uncle, who wants you to keep it in working

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You are given an old car by your uncle, who wants you to keep it in working condition so that you can hand it off to your younger brother in three years. It will cost you $1,500 per year to keep it in working condition for your brother. If you skip maintenance altogether, the car will die after two years, but you can pocket the maintenance costs. What will you be tempted to do? Would higher maintenance costs make you more or less likely to do what your uncle wants? Explain.

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Economics

ISBN: 9781264112272

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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