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QUESTION:

You have spent $1,000 building a snow cone stand based on estimates of sales of $2,000. The snow cone stand is nearly completed, but now you estimate total sales to be only $800. You estimate that you can complete the snow cone stand for another $300. (Assume that snow cones cost you nothing.)

Your decision rule should be to complete the snow cone stand as long as the cost to complete the stand is less than _______

ANSWER:

b) 800


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