Acme Home Builders, Inc, has built 24 houses so far this year at a total cost to the company of $4.80 million. If the company builds a 25th house, its total cost will increase to $5.05 million. Which of the following statements is correct?
a. For the first 24 houses, the average cost per house was $205,000.
b. The marginal cost of the 25th house, if it is built, will equal $250,000.
c. If the company can sell the 25th house for at least $202,000 . then it should build it.
d. All of the above are correct.
b
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The multiplier is
A) the percentage of a given change in income that goes towards consumption. B) the number which is multiplied by an autonomous change which gives the change in the equilibrium level of real GDP. C) the part of consumption that is independent of the level of disposable income. D) the proportion of total disposable income that is consumed.
When there is a shortage, producers raise prices in an attempt to
a. separate the quantity supplied and demanded b. raise the quantity demanded c. equalize the quantity supplied and demanded d. lower the quantity supplied