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?Recently, a woman named Mary Krawiec attended an auction in? Troy, New York. At

ID: 1151885 • Letter: #

Question

?Recently, a woman named Mary Krawiec attended an auction in? Troy, New York. At the? auction, a bank was seeking to sell a foreclosed? property: a large Victorian house suffering from years of neglect in a neighborhood in which many properties had been on the market for years yet remained unsold. Her? $10 offer was the highest bid in the? auction, and she handed over a? $10 bill for a title to ownership. Once she acquired the? house, however, she became responsible for all taxes on the property amounting to

?$4,000

and for an overdue water bill of

?$2,500.

In? addition, to make the house? habitable, she and her husband devoted months of time and unpaid labor to renovating the property. In the? process, they incurred explicit expenses totaling

?$62,858.

Calculate Mary? Krawiec's explicit cost.??

?$??.

?(Round your response to the nearest? integer.)

Mary? Krawiec's total cost is

?

higher than

equal to

lower than

her explicit cost.

If the bank were to own the? property, its total costs were likely to be

?

higher than

equal to

lower than

Mary? Krawiec's explicit cost.

The bank was willing to sell the house at auction to Ms. Krawiec for only? $10 because if the bank paid to renovate the? property, paid the back? taxes, and paid the overdue water? bill,

A.

the expected selling price for the property would have been higher than Mary? Krawiec's explicit costs.

B.

the expected selling price for the property would have been lower than the? bank's total costs.

C.

the expected selling price for the property would have been only ten percent higher than the? bank's total costs.

D.

the expected selling price for the property would have been higher than Mary? Krawiec's total costs.

anyone who can explain me these question quickly get very few time left. Help will be hughly appreciated.

Explanation / Answer

Ans:

1)

Mary? Krawiec's explicit cost = $10 + $4000 + $2500 + $62,858

                                            = $69,368

2) higher than

Mary? Krawiec's total cost is higher than her explicit cost.

Total cost = Explicit cost + Implicit cost

3) higher than

If the bank were to own the? property, its total costs were likely to be higher than Mary? Krawiec's explicit cost.This is because total cost includes explicit cost and implicit cost.

4) Option B

the expected selling price for the property would have been lower than the? bank's total costs.

if the bank paid to renovate the? property, paid the back? taxes, and paid the overdue water? bill, the expected selling price for the property would have been lower than the? bank's total costs.

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