Does the following statement make sense?

Economics
Tutor: None Selected Time limit: 1 Day

Auto Repairs

Does the following statement make sense?

You made a real blunder. The $600 you paid for repairs is worth more than the car.

Aug 29th, 2015

Thank you for the opportunity to help you with your question!

The statement seems ambiguous and does not make sense in terms of business since the amount will be enough to purchase a new car and even sell the old one to obtain economic advantage rather than using excess amount of money for the repairs.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 29th, 2015

Can you expand on this in terms of microeconomics please?

Aug 29th, 2015

Spending $6000 on the car which has depreciated and has lost its value is not conserving and using the required amount that is enough for new car. Microeconomics requires that we spend the least possible rather than being extravagant.

Aug 29th, 2015

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Aug 29th, 2015
...
Aug 29th, 2015
Dec 11th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer