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ECON 110 Practice Set Marginal Analysis Question Set One: Zoey bought her home for $80,000 in the past. In 2010, she added an extension to

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ECON 110 Practice Set Marginal Analysis Question Set One: Zoey bought her home for $80,000 in the past. In 2010, she added an extension to the home for a total cost of $12,000. However, now she's decided to sell her house so she can move to a new city. Zoey finds out that she can get $70,000 for her house as it currently is. However, when she does some additional research she finds out than an extra $8000 addition could get her a price of $82,000. Calculate the relevant marginal benefit and marginal cost. Should Zoey put on the new addition before selling? Explain why or why not

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