Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed
After having spent $125, Zane realizes that he will need to spend an additional $200 on materials to complete the restoration. Alternatively, he can sell the weather vane without restoring it for $200. What is his marginal benefit if he sells the weather vane without restoring it?
A) $75 B) $125 C) $200 D) $300
C
You might also like to view...
Based on the figure above, the aggregate demand curve will shift from AD0 to AD2 when
A) potential GDP increases. B) the price level falls. C) taxes are lowered. D) government expenditure increases. E) the Federal Reserve raises the interest rate.
All of the following are choices for the polluter when faced with additional costs to abate the externality EXCEPT
A) ignore the government regulations. B) install pollution abatement equipment. C) reduce the pollution-causing activity. D) pay the price to pollute.