You have decided that you want to attend a costume party as Iron Man. You estimate that it will cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional pieces you need will cost you $25 more. The marginal cost of completing the costume is
A) $15.
B) $25.
C) $40.
D) $65.

Question

Quizplus · Accepted Answer

The marginal cost is the cost of producing one additional unit. In this case, the additional pieces needed to complete the costume are the additional unit. Therefore, the marginal cost is $25.

You Have Decided That You Want to Attend a Costume