A construction company has built 30 houses so far this year at a total cost to the company of $7.5 million. If the company builds a 31st house, its total cost will increase to $7.76 million. Which of the following statements is correct?
a. For the first 30 houses, the average cost per house was $250,000.
b. The marginal cost of the 31st house, if it is built, will be $260,000.
c. If the company can experience a marginal benefit of $275,000 by building the 31st house, then the company should build it.
d. All of the above are correct.
d
You might also like to view...
The difference between the total willingness to pay for a good and the amount actually spent measures:
A) the total benefits from consuming the good. B) the net gain from the production and consumption of the good. C) the amount by which producers are better off, i.e., producers' surplus. D) the amount by which consumers are better off, i.e., consumers' surplus.
Combined federal, state, and local government expenditures in the United States were approximately 9 percent of the gross domestic product (GDP) in 1930 . How large were government expenditures as a share of GDP in 2012?
a. approximately 15 percent b. approximately 25 percent c. approximately 30 percent d. approximately 38 percent