Pauli's Pizza offers one slice for $2,two slices for $3.50,three slices for $4.50,and four slices for $5.00.Sal orders two slices.From this we know that Sal's marginal benefit from the second slice must be at least _____ and the marginal benefit from the third slice must be less than _____.
A)$3.50;$4.50
B)$3.50;$1.00
C)$1.50;$1.00
D)$1.50;$4.50

Question

Quizplus · Accepted Answer

If Sal orders two slices, he will pay $3.50, which means his marginal benefit from the second slice must be at least $1.50 to justify spending the extra money. 
If Sal were to order three slices, he would only pay $4.50, which means the marginal benefit from the third slice must be less than $1.00 to justify not ordering the fourth slice, which is a better deal at $5.00 for four slices. Therefore, the best choice for Sal is to only order two slices.

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