Econ paper2

Econ paper2 - Microeconomics 102 Tuxedo or Car, which one...

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Microeconomics 102 Tuxedo or Car, which one would you pay for? Why does a tuxedo for occasion cost $90 to rent per day while, a car valued at a higher price can be rented at only $40 per day? This is something that goes on almost everyday throughout the world. A Tuxedo can be bought on average for about $500. Yet the car that people are renting cost about $20,000. So when then, does the car which has a higher initial cost for the supplier, cost less to rent for the renter than the tuxedo? It may be simpler than most people think. The rental companies base their price on a couple factors. One is the price they will have to pay to up keep their items. The other factor is the amount of usage they can have in a certain time. For example, the car rent- ing company such as Enterprise can have a customer return their car by 12 pm and they can have the same car ready for another customer by 2pm. Most people do not care about using the same car that someone else has used because it being used to
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