Solved: Continue to search or buy a dvd player, Accounting Basics

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Continue to search or buy a dvd player

Question: Joe's search costs are $7 per search. He wants to buy a DVD player for his wife for Christmas, and the lowest price he's found so far is $200. Joe thinks one-third of the stores charge $300 for a DVD player, one-third charge $200, and one-third charge $185. Should Joe continue to search or buy a DVD player at a price of $200?

Please step me through this problem.

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Accounting Basics: Continue to search or buy a dvd player

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Accounting Basics: Continue to search or buy a dvd player

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