You have decided that you want to attend a renaissance fair as King Henry VIII. You estimate that it will cost $80 to assemble your costume. After spending $80 on the costume, you realize that the additional pieces you need will cost you $20 more. The marginal cost of completing the costume is
A) $20.
B) $60.
C) $80.
D) $100.

Question

Quizplus · Accepted Answer

The marginal cost refers to the additional cost incurred for an additional unit of something. In this case, the additional pieces needed to complete the costume cost $20 more, making that the marginal cost.

You Have Decided That You Want to Attend a Renaissance