A construction company has built 30 houses so far this year at a total cost to the company of RM7.5 million. If the company builds a 31st house, its total cost will increase to RM7.76 million. Which of the following statements is correct? A. O For the first 30 houses, the average cost per house was RM250,000. B. If the company can experience a marginal benefit of RM275,000 building the 31st house, then the company should build it. C. All of the above are correct. D. The marginal cost of the 31st house, if it is built, will be RM260,000.
A construction company has built 30 houses so far this year at a total cost to the company of RM7.5 million. If the company builds a 31st house, its total cost will increase to RM7.76 million. Which of the following statements is correct? A. O For the first 30 houses, the average cost per house was RM250,000. B. If the company can experience a marginal benefit of RM275,000 building the 31st house, then the company should build it. C. All of the above are correct. D. The marginal cost of the 31st house, if it is built, will be RM260,000.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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Transcribed Image Text:A construction company has built 30 houses so far this year at a total cost to the company of RM7.5 million. If the company builds a 31st house, its total cost will increase to RM7.76 million. Which of
the following statements is correct?
А.
For the first 30 houses, the average cost per house was RM250,000.
В.
If the company can experience a marginal benefit of RM275,000 by building the 31st house, then the company should build it.
C.
All of the above are correct.
D.
The marginal cost of the 31st house, if it is built, will be RM260,000.
Transcribed Image Text:When Joe's budget increases, he will spend the increase in his budget on
А.
essential goods
В.
more of all the goods he usually buys
C.
normal goods
D.
inferior goods
B.
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