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Below Is a Histogram of Car Prices on a Used-Car

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Essay

Below is a histogram of car prices on a used-car lot. An advertisement for the lot says the average price of a car for sale is $12,000. Could the advertisement be true? Why or why not? Below is a histogram of car prices on a used-car lot. An advertisement for the lot says the average price of a car for sale is $12,000. Could the advertisement be true? Why or why not?


Definitions:

Net Benefit

The total positive impact or gain subtracted by the total cost or negative impact, typically used in the analysis of business or policy decisions.

Marginal Benefit (MB)

The augmented satisfaction or usefulness obtained by consuming or producing one extra unit of a good or service.

Marginal Cost (MC)

An upsurge in the cumulative cost incurred from the production of one more unit of a product or service.

Marginal Benefit

The boost in satisfaction or utility experienced by a consumer when they consume an additional unit of a specific good or service.

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