A construction company has built 30 houses so far this year at a total cost to the company of $7.5 million. If the company builds a 31st house, its total cost will increase to $7.76 million. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

A) For the first 30 houses, the average cost per house was $250,000, which can be calculated by dividing the total cost ($7.5 million) by the total number of houses (30).
B) The marginal cost of the 31st house, if it is built, will be $260,000, which can be calculated by subtracting the total cost of building 30 houses ($7.5 million) from the total cost of building 31 houses ($7.76 million).
C) If the company can experience a marginal benefit of $275,000 by building the 31st house, then the company should build it. This information is not given in the question, so this statement cannot be confirmed as correct.

A Construction Company Has Built 30 Houses So Far This