Chuck Offers $122,000 for a House

question 57

Multiple Choice

Chuck offers $122,000 for a house.The seller turns down the offer but says she will sell the house for $129,000.However,Chuck refuses to pay the higher price.If both Chuck and the seller are rational,then marginal analysis implies that the marginal benefit to the house to

• A) Chuck must be less than $129,000.
• B) Chuck must be greater than $129,000.
• C) Chuck must be greater than $122,000.
• D) the seller must be less than $129,000.
• E) the seller must be less than $122,000.

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Definitions:

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Fixed Asset Account

A financial account that tracks the cost and depreciation of assets a company uses over a long period.

Pro Forma Statement

An estimation or projection of future financial performance based on a company's current financial position and expected future transactions.

Capacity Utilization

The percentage of a business or industry's total possible production capacity that is actually being utilized.