Solved: If used computers sell for 650 how much do new ones sell, Business Economics

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If used computers sell for 650 how much do new ones sell

Problem: Suppose one in every four new personal computers is defective. The defective ones, however, cannot be identified except by those who own them. Consumers are risk neutral and value nondefective at $1900 each. Computers do not depreciated physically with use.

Required:

If used computers sell for $650, how much do new ones sell for?

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Business Economics: If used computers sell for 650 how much do new ones sell

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Business Economics: If used computers sell for 650 how much do new ones sell

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