Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 30

Last year, you estimated you would earn $5 million in sales revenues from developing a new product. So far, you have spent $3 million developing the product, but it is not yet complete. Meanwhile, this year you have new sales projections that show expected revenues from the new product will actually be only $4 million. How much should you be willing to spend to complete the product development? a. $0.
B) Up to $1 million.
C) Up to $4 million.
D) Whatever it takes.