A lighthouse that serves a dangerous coastal area is built. The lighthouse cost $1 million to build and serves 100 ships a month. If the shipping in the area increases so that 200 ships pass by a month, the increase in additional costs of providing the light to these new ships is
A) $1 million.
B) $100,000.
C) $5,000.
D) $0.

Question

Quizplus · Accepted Answer

The cost of operating the lighthouse is fixed, regardless of how many ships benefit from it. Therefore, the additional cost of providing light to more ships is $0.

A Lighthouse That Serves a Dangerous Coastal Area Is Built