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The price of a new model of iPod tends to fall significantly a year after it is

ID: 1209345 • Letter: T

Question

The price of a new model of iPod tends to fall significantly a year after it is first introduced. Suppose Jane bought an iPod as soon as it was introduced (a year ago) and paid a premium price for it. Now she wants to buy a new battery charger. Which of the following should she consider before buying the new accessory? The price she paid for her iPod, the price of the battery charger, and the benefit she'll receive from using the battery charger. The price of replacing her iPod, the price of the battery charger, and the benefit she'll receive from using the battery charger. The price of the battery charger and the benefit she'll receive from using the battery charger. The price of the battery charger had she bought it with the iPod, the current price of the battery charger, and the benefit she'll receive from using the battery charger.

Explanation / Answer

the current price of the battery charger, and the benefit she'll receive from using the battery charger.

You have already bought the ipod so its sunken cost and you cannot recover lost value of the device, It is great to think about how much more value you can get from the device and utilize it

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