Mike has spent $600 purchasing and repairing an old fishing boat, which he expects to sell...

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Mike has spent $600 purchasing and repairing an old fishing boat, which he expects to sell for $800. Mike discovers, that, in addition to the $600 he has already spent, he needs to make an additional repair, which will cost another $300 in order to make the boat worth $800 to potential buyers. He can sell the boat as is now for $300. What should he do? (hint: use marginal analysis concepts) O It does not matter since the outcome of making the repair or not will all work out the same O Sell the boat as is now for $300 O He should complete the repair and sell the boat for $800 O none of the above Mike has spent $600 purchasing and repairing an old fishing boat, which he expects to sell for $800. Mike discovers, that, in addition to the $600 he has already spent, he needs to make an additional repair, which will cost another $300 in order to make the boat worth $800 to potential buyers. He can sell the boat as is now for $300. What should he do? (hint: use marginal analysis concepts) O It does not matter since the outcome of making the repair or not will all work out the same O Sell the boat as is now for $300 O He should complete the repair and sell the boat for $800 O none of the above

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer He should complete the repair an... View the full answer