-Consider the Table Above

question 28

Multiple Choice

$\begin{array}{rrr}\begin{array}{l}\\Price\\Effective ~gross ~income \\\% ~operating ~expense\\\mathrm{NOl}\\\end{array}\begin{array}{rrr}\text { Comp 1 } & \text { Comp 2 } & \text { Comp 3 } \\\hline \$ 300,000 & \$ 350,000 & \$ 375,000 \\50,000 & 55,000 & 60,000 \\50 \% & 55 \% & 54 \% \\25,000 & 30,000 & 32,500\end{array}\end{array}$
-Consider the table above. Assume that the subject property has effective gross income of $53,000 and a NOI of $27,500. What value would a GIM approach yield rounded to the nearest $100) ?

• A) $322,600
• B) $325,600
• C) $328,600
• D) $330,000

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Definitions:

Marginal Cost

The alteration in overall expenses that occurs when the production volume is increased by one unit.

Marginal Cost Curve

A curve that illustrates how the cost of producing an additional unit of a good changes as the output level is increased.

Fixed Costs

Costs that do not vary with the level of output or activity, such as rent, salaries, or loan payments.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production.