Cassies Quilts alters reconstructs and restores heirloom qui

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.

Solution

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