Cassie\'s Quilts alters, reconstructs, and restores heirloom quilts. Cassie has

Question

Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning, and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What is her marginal benefit if she sells the quilt "as is" now? O A. $100 OB. S900 O C. She makes a marginal loss of $600, not a marginal benefit. O D. The marginal benefit cannot be determined

Explanation / Answer

Answer is A. $ 100.

Explanation:

Cost of Purchasing the quilt is $ 800.

Sale price at this point is $ 900.

Marginal benefit of selling the quilt as is now: 900-800 = $100.

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