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 1 poir 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

Respuesta :

Answer:

b) $25

Explanation:

Marginal cost is the added expense incurred by undertaking an extra activity, be it selling or production. The marginal concept is applied to determine the viability of engaging in extra activity.  Marginal cost is a result of an extra unit of input. It can be additional labor hour, extra worker, or an extra unit produced.

In this case, the marginal cost will be $25. It the extra expense incurred to complete the costume. Marginal cost is the additional cost beyond the expected arising from an extra activity.

Answer:

The answer is (B) $25

Explanation: