Liam wants to buy some milk and a box of cereal. If Liam buys 4 gallons of milk at $3.00 per gallon, the box of cereal costs $2.00. If he buys 5 gallons of milk, the box of cereal is free. For Liam, the marginal cost of buying a fifth gallon of milk is
A) zero.
B) $1.00.
C) $2.00.
D) $3.00.

Question

Quizplus · Accepted Answer

The Answer of Liam wants to buy some milk and a box of cereal. If Liam buys 4 gallons of milk at $3.00 per gallon, the box of cereal costs $2.00. If he buys 5 gallons of milk, the box of cereal is free. For Liam, the marginal cost of buying a fifth gallon of milk is
A) zero.
B) $1.00.
C) $2.00.
D) $3.00.

Liam Wants to Buy Some Milk and a Box of Cereal