Suppose that you sign up for a one-day cooking class at the local culinary school for $75. Once you arrive at the class, you discover that you must purchase an apron for an additional $5. In this situation, the additional $5 you pay for the apron is an example of
A) an inefficient cost.
B) marginal cost.
C) opportunity cost.
D) an economic loss.

Question

Quizplus · Accepted Answer

The additional $5 you pay for the apron 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 of the additional item (the apron) required for the cooking class.

Suppose That You Sign Up for a One-Day Cooking Class