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 variable carol can maximize her use of it by building the smaller house
b: since the cost of the land is high carol can increase the demand for it by building the smaller house.
c: since the cost of the land is fixed carol can limit the variable cost of construction is by building the smaller house
d: since the cost of the land is low carol can decrease the trade-offs she must make by building the smaller house.
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