You have decided that you want to attend a costume party as Black Panther. You estimate that it will cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional pieces you need will cost you $25 more. The marginal cost of completing the costume is
A) $15.
B) $25.
C) $40.
D) $65.

Question

Quizplus · Accepted Answer

The marginal cost refers to the additional cost incurred to produce or, in this case, complete an additional part of a project or product. Here, the marginal cost of completing the costume, after the initial $40 has been spent, is the extra $25 needed for the additional pieces.

You Have Decided That You Want to Attend a Costume