As the Buyer for Your Business, You Can Choose to Buy

question 8

Multiple Choice

As the buyer for your business, you can choose to buy an extended warranty for each new computer for $200 each. During this period, each computer will experience either a minor ($100) or major ($500) repair bill. Repairs for each computer under warranty are reduced by 50% to $50 or $250. Assume the computer company wants to make as much money as possible, and you wish to spend as little as possible. What is the computer company's optimal strategy?

• A) Always sell the warranty.
• B) Never sell the warranty.
• C) Sell the warranty for less than half of the computers.
• D) Sell the warranty for more than half of the computers.

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Definitions:

2 To 2 ½ Years

The age range of 2 to 2 ½ years marks a critical period in early childhood development, characterized by rapid growth in language skills, motor abilities, and the beginnings of social interaction.

Inductive Techniques

Methods used to derive general principles from specific observations.

Permissive Parents

A parenting style characterized by low demands with high responsiveness, where parents are more lenient and may set fewer boundaries.

Impose Few Rules

The principle of setting minimal guidelines or limitations to allow for greater freedom or self-direction.