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?
The marginal benefit from selling the vane without restoring it is $200.
Explanation:
Marginal benefits are the extra income a company can get from selling one additional unit of production.
Zane had already spent $250 in purchasing the vane and the restoration process.
Zane has two options:
Sell the vane as it is for $200.
Keep restoring the vane, spend $200 more and sell the vane for $500.
If Zane decides to sell the vane as it is, his marginal benefit will be $200. That would not be enough to cover his costs, this transaction will result in a $50 loss.
If Zane decides to continue the restoration, then his marginal costs will be $200 extra, but his marginal benefit would be $500. If he chose this option he could end up earning a $50 profit.
If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will <u>decline</u>. This happens because people lost trust and hastily withdrawn their money deposited with the bank.
Due process refers to the treatment that both parties involved in a case should experience in order to obtain a hearing. The standard for the treatment is the same for civil and criminal cases. The only thing that different between the two only the magnitude of the punishment.
O Stands for offer , A stands for acceptance , C stands for consideration , K stands for contract . An offer requirement, a contract and acceptance have it’s own thing.
