Pookie's Pinball Palace restores old Pinball machines.Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2,000 once he is finished with the restoration.After having spent $300, Pookie discovers that he will need to rewire the entire machine at a cost of $1,100 in order to finish the restoration.Alternatively, he can sell the machine "as is" now for $1,000.What is his marginal benefit if he sells the machine "as is" now?
A)$300
B)$900
C)$1,000
D)The marginal benefit cannot be determined.

Question

Quizplus · Accepted Answer

Marginal benefit is the additional benefit gained from taking an action. In this case, the marginal benefit of selling the machine "as is" now is $1,000, which is the amount of money Pookie would receive from selling the machine minus the $300 he has already spent on it.

Pookie's Pinball Palace Restores Old Pinball Machines