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.
Correct Answer:
Verified
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