Stan Buys a 1966 Mustang, Which He Plans to Restore

question 174

Multiple Choice

Stan buys a 1966 Mustang, which he plans to restore and sell. He anticipates that the cost of the car and the repairs will be $15,000 and that he can sell it for $19,000. When he has spent $14,000, he discovers he needs to replace the engine, which will cost $5000. He can sell the car without the new engine for $16,000. What should Stan do?

• A) He should complete the repairs and sell the car for $19,000.
• B) He should sell the car now for $16,000.
• C) He should keep the car for his own use because selling it would be a loss.
• D) He should be totally indifferent between finishing the project and selling the car now.

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Definitions:

Function

In mathematics and computer science, it refers to a relation or expression involving one or more inputs and a single output.

Folk

Relating to the traditional art, music, lore, and practices of a community or culture.

Propositional

Pertaining to or involving propositions, which are statements or expressions in logic that can be either true or false.

Prototype Theory

A model of categorization in cognitive science where some members of a category are more central or "prototypical" than others.