Question

Carol wants to buy a plot of land for $100,000. However, she cannot decide whether she wants to

build a small one-story house on it or a large two-story house on it.
Why should Carol build the smaller house that will cost less, assuming she wants to spend as little
money as possible?
A. Since the cost of the land is high, Carol can increase the demand for it by building the
smaller house
B. Since the cost of the land is fixed, Carol can limit the variable cost of construction by
building the smaller house.
C. Since the cost of the land is low, Carol can decrease the trade-offs she must make by
building the smaller house.
D. Since the cost of the land is variable, Carol can maximize her use of it by building the
smaller house​

Answer 1

Correct Answer: A

Step-by-step explanation:

Answer 2

Since the cost of the land is fixed, Carol can limit the variable cost of construction by building the smaller house.

Step-by-step explanation: