Question

A start-up company just acquired a big project. The project requires a lot of money. The company must hold off on building its new office to complete the project. What was the reason for the company's decision?

a. The marginal benefit of completing the project outweighs the marginal cost of the project.
b. The marginal cost of building a new office is equal to the marginal benefit of completing the project.
c. There is no practical marginal benefit in building a new office for the company in the long run.
d. The marginal benefit of the new office is less than its marginal cost.

Answer 1

its A; The marginal benefit of completing the project outweighs the marginal cost of the project.

Answer 2

A. The marginal benefit of completing the project outweighs the marginal cost of the project