1. [3 points] In light of supply chain challenges NewBuild, a company that builds houses in the Midwest, secured enough lumber last year to build houses through 2022. They paid $900 per ton of lumber. Since then, lumber prices have plummeted to $750 per ton. NewBuild could always resell its lumber at the current market price.

NewBuild uses 15 tons of lumber per house they build. They also use 1,800 hours of labor at a wage of $25 per hour, $40,000 of other materials, and $30,000 of appliances and fixtures per house. In addition, NewBuild pays its receptionist $40,000 per year and rents its office space for $60,000 per year. NewBuild expects to build 20 houses this year.

What is NewBuild's marginal cost of building a house?

1. [3 points] In light of supply chain challenges NewBuild, a company that builds houses in the Midwest, secured enough lumber last year to build houses through 2022. They paid $900 per ton of lumber. Since then, lumber prices have plummeted to $750 per ton. NewBuild could always resell their lumber at the current market price. NewBuild uses 15 tons of lumber per house they build. They also use 1,800 hours of labor at a wage of $25 per hour, $40,000 of other materials, and $30,000 of appliances and xtures per house. In addition, NewBuild pays its receptionist $40,000 per year and rents its ofce space for $60,000 per year. NewBuild expects to build 20 houses this year. What is NewBuild's marginal cost of building a house