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A Construction Company Has Built 50 Houses So Far This

Question 71

Multiple Choice

A construction company has built 50 houses so far this year at a total cost to the company of $8 million.If the company builds a 51ˢᵗ house,its total cost will increase to $8.18 million.Which of the following statements is correct?


A) For the first 50 houses, the average cost per house was $160,000.
B) The marginal cost of the 51ˢᵗ house, if it is built, will be $180,000.
C) If the company can experience a marginal benefit of $190,000 by building the 51ˢᵗ house, then the company should build it.
D) All of the above are correct.

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