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Real Life Trade of a 1996 Mustang Sale Transaction Case Study Assignment
Subject
Economics
Question Description
You are selling your 1996 Mustang. You have already spent $1000 on repairs.
At the last minute, the transmission dies. You can pay $600 to have it repaired, or sell the car “as is.”
In each of the following scenarios, should you have the transmission repaired? Explain your thoughts in either case by posting a comment or a response to a comment.
A. Blue book value (what you could get for the car) is $6500 if transmission works, $5700 if it doesn’t.
B. Blue book value is $6000 if transmission works, $5500 if it doesn’t.
Next, provide an example of a real life trade off that you might have faced and try to put some dollar numbers to measure the costs and benefits of the tradeoff.
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