Carol Has Spent $2,000 Purchasing and Repairing an Old Car

question 126

Multiple Choice

Carol has spent $2,000 purchasing and repairing an old car, which she expects to sell for $2,400 once the repairs are complete. She discovers that she needs an additional repair, which will cost $400, in order to complete the repairs. She can sell the car as it is now for $2,000. What should she do?

• A)She should cut her losses and take the $2,400.
• B)She should never sell something for less than it cost.
• C)She should complete the repairs and sell the car.
• D)It doesn't matter which action she takes; the outcome is the same either way.

---

Definitions:

Motivated

Having a strong reason or desire to act or accomplish something, often driven by internal or external factors.

Needs Hierarchy Model

A theoretical framework introduced by Abraham Maslow, proposing that human needs are arranged in a hierarchy, with basic needs at the bottom and self-actualization at the top.

Widely Recognized

Known or acknowledged by a large number of people or across a broad spectrum.

Physiological Needs

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep.