Zane's Vanes is a service that restores old weather vanes.Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed.After having spent $125,Zane realizes that he will need to spend an additional $200 on materials to complete the restoration.Alternatively,he can sell the weather vane without restoring it for $200.What is his marginal benefit if he sells the weather vane without restoring it?
A)$75
B)$125
C)$200
D)$300

Question

Quizplus · Accepted Answer

The marginal benefit of selling the weather vane without restoring it is the immediate gain from the sale, which is $200. This does not consider the costs already incurred or potential future profits from restoration.

Zane's Vanes Is a Service That Restores Old Weather Vanes