Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the additional $15 you pay for parking is an example of
A) an economic loss.
B) opportunity cost.
C) marginal cost.
D) an inefficient cost.

Question

Quizplus · Accepted Answer

The additional $15 you pay for parking is an example of marginal cost, which refers to the cost of purchasing one more unit of a good or service. In this context, it's the cost associated with the next level of spending related to attending the festival, beyond the initial ticket purchase.

Suppose That You Purchased a Ticket to a Jazz Festival