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 the marginal cost of completing the task? (Points : 1)
$1,000 plus the value of her time
4. The term “market” in economics refers to (Points : 1)
a place where money changes hands.
a legal institution where exchange can take place.
a group of buyers and sellers of a product and the arrangement by which they come together to trade.
an organization which sells goods and services.
5. The revenue received from the sale of an additional unit of a product (Points : 1)
is a marginal benefit to the firm.
is called profit.
is called gross sales.
is called a net gain.