Question

​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 1

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?

Correct Answer;-

B.

​$900

Reason:- She is earning a profit of $900