Pauli's Pizza offers one slice for $2,two slices for $3.50,three slices for $4.50,and four slices for $5.00.The marginal cost of the third slice is:

Question

Quizplus · Accepted Answer

The marginal cost is the cost of producing an additional unit, in this case, an additional slice. From the prices given, we can see that the first slice costs $2, the second slice costs $1.50, the third slice costs $1, and the fourth slice costs $0.50. Therefore, the marginal cost of the third slice is $1. Choosing to buy three slices for $4.50 would be the best choice, as adding an extra slice would cost more than the additional benefit.

Pauli's Pizza Offers One Slice for $2,two Slices for $3