Richard Is Collecting Estimates for a House That He Will

question 21

Multiple Choice

Richard is collecting estimates for a house that he will have the funding to build in 12 months.Which of the following factors does Richard need to consider in regard to the quality of these estimates?

• A)Padding estimates
• B)Planning horizon
• C)Project structure
• D)People
• E)Project duration

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Definitions:

Extensive Economies of Scale

Refers to reductions in per-unit cost as the size of a firm or its level of production increases.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue that comes from selling an additional unit.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at various prices.

Coefficient of Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its price.