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Suppose Union University has spent $10,000 on an option to purchase land for new dormitories at a price of $100,000. Also assume that it

 

Suppose Union University has spent $10,000 on an option to purchase land for new dormitories at a price of $100,000. Also assume that it is later offered an equally attractive site for $95,000. What should Union do? Carefully explain your answer using marginal analysis.

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