Practice prompt · Q:economics-and-market-foundations/identify-marginal-cost-001

Identify incremental sacrifice and exclude unchanged cost

Compute marginal cost from before and after totals while preserving a past fixed payment for reporting rather than charging it to one alternative.

Updated Aug 7, 2026 Review due Nov 7, 2026

Practice

Check your answer

Choose a response, then check the answer and explanation.

A control process has $14,000 of total expected cost. Adding one targeted review raises the total to $19,000. A $12,000 workflow-design payment was made earlier, is nonrefundable, and is unchanged by either current alternative. What is the marginal cost of the added review?

Choose the best answer. a $5,000, the increase in total expected cost from $14,000 to $19,000. b $19,000, because the entire new total is caused by the increment. c $17,000, after including a $12,000 nonrefundable design payment made before either current alternative.

Your answer stays on this page. It is not sent or saved.

Show explanationHide explanation

Answer: a

Choice a. Marginal cost is $19,000 less $14,000, or $5,000. The prior $12,000 payment remains relevant elsewhere but contributes zero to the current difference.