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InterviewSolution
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Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services and the sisters are contemplating whether to open up a satellite office in Austin. They estimate it would add $7 million in expenses and a profit of $12.5 million in total over the next 5 years (all other things equal). Indi and Indrani decideSelect one:a. to open a new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million).b. to not open a new office because revenue would not be as high as competitorsc. to open an Austin office because the marginal cost of the new office is low compared to other similar projects.d. to not open a new office because the marginal costs proved to be too high. |
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Answer» Answer: PLEASE mark me as brain leastExplanation: COST OF THE PROGRAM IS EQUAL TO THE TOTAL BENEFITS.IF WE DOUBLE THE ORDER TO A DOZEN DOUGHNUTS, WE WILL PAY ONLY 20 PERCENT MORE.BOOKING THIS CONDO IN A BETTER LOCATION IS WORTH |
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