A planned motorway connecting two cities was originally expected to cost £200 million. After building part of the system at a cost of £150 million, the government realised that the total cost of the system would be £260 million rather than £200 million. At this point, the marginal cost of completing the motorway is best estimated as

Question

Quizplus · Accepted Answer

The marginal cost of completing the motorway is the additional cost required to finish the project, which is the new total cost (£260 million) minus the cost already incurred (£150 million), resulting in £110 million.

A Planned Motorway Connecting Two Cities Was Originally Expected to Cost