Business

Dangelo Sellers

19 April, 08:53

You walk onto a used-car lot to buy your first car. However, you are not sure about the quality of the cars in the lot and expect one-third of them to be of poor quality. Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for $10,000. You don't know it, but the car dealer values it for $8, 500. If you have a zero value for poor-quality cars, what is the most that would you be willing to pay for the car? a) $10,000 b) $5,000 c) $3,000.50 d) $6, 666.67