The Following Table Shows the Total Benefit from Painting 0,1,2,3,or

question 72

Multiple Choice

The following table shows the total benefit from painting 0,1,2,3,or 4 rooms in a home.

-If the marginal cost is constant at $250,what is the optimal number of rooms to paint?

• A) 0.
• B) 1.
• C) 2.
• D) 3.
• E) 4.

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Definitions:

Differentiation Strategy

A business approach where a company seeks to distinguish its products or services from competitors through unique features.

Cost-Based Advantages

Competitive advantages a company gains by reducing its costs below the industry average, often leading to lower prices or higher margins.

Functional Design

Functional design refers to creating items, systems, or processes that prioritize practicality and efficiency while meeting specific objectives.

Low-Cost Strategy

A business strategy aimed at becoming the lowest-cost producer in the industry or market, thereby allowing the company to offer its products or services at lower prices than competitors.