Question

Select the correct answer.

John wants to add an employee to his event management crew. What is the marginal cost of this decision?
A.
the total revenue created by the new member
B.
the salary to be paid to the new member
C.
the salary paid to the existing crewmembers
D.
the total salary paid to the crew and the new member
E.
the total cost of the entire event

Answer 1

B

Step-by-step explanation:

Answer 2

The salary paid to the new member ( B)

Explanation:

The marginal cost is the cost incurred by a business or organization for the production or addition of one additional unit of good or service to the already existing number and this additional unit cause a change in opportunity cost as well.

The addition of an employee to the event management crew will result to a marginal cost in the form of salary been paid to the new member/employee

hence option B is the correct. option D would have be correct option if the question requested the total Marginal cost incurred by the event management crew