Question

# ​Cassie's Quilts​ alters, reconstructs, and restores heirloom quilts. Cassie has just spent​ \$800 purchasing,​ cleaning, and...

​Cassie's Quilts​ alters, reconstructs, and restores heirloom quilts. Cassie has just spent​ \$800 purchasing,​ cleaning, and reconstructing an antique quilt which she expects to sell for​ \$1,500 once she is finished. After having spent​ \$800, Cassie discovers that she would need some special period fabric that would cost her​ \$200 in material and time in order to complete the task. ​ Alternatively, she can sell the quilt​ "as is" now for​ \$900. What is her marginal benefit if she sells the quilt​ "as is"​ now?

A.

​\$100

B.

​\$900

C.

She makes a marginal loss of​ \$600, not a marginal benefit.

D.

The marginal benefit cannot be determined.

Answer:- ​Cassie's Quilts​ alters, reconstructs, and restores heirloom quilts. Cassie has just spent​ \$800 purchasing,​ cleaning, and reconstructing an antique quilt which she expects to sell for​ \$1,500 once she is finished. After having spent​ \$800, Cassie discovers that she would need some special period fabric that would cost her​ \$200 in material and time in order to complete the task. ​ Alternatively, she can sell the quilt​ "as is" now for​ \$900. What is her marginal benefit if she sells the quilt​ "as is"​ now?

B.

​\$900

Reason:- She is earning a profit of \$900

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