A Construction Company Has Built 30 Houses So Far This

question 216

Multiple Choice

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?

• A) For the first 30 houses, the average cost per house was $250,000.
• B) The marginal cost of the 31st house, if it is built, will be $260,000.
• C) If the company can experience a marginal benefit of $275,000 by building the 31st house, then the company should build it.
• D) All of the above are correct.

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Definitions:

CT Scan

A diagnostic medical imaging technique that uses a combination of X-rays and computer technology to produce cross-sectional images of the body's internal structures.

Homeostasis

The biological process through which living organisms regulate their internal environment to maintain a stable, constant condition.

Equilibrium

A state of balance or stability within a system, achieved when all forces or influences are equal and opposing, leading to no net change.

Biological Conditions

Refer to physical or physiological states that affect the living organisms' bodily functions.