A customer at a fast-food restaurant may choose to order a burger for $4.00 and fries for $1.50, or order a value meal (that includes the burger, fries, and a drink) for $6.00. What is the marginal cost of the drink if the customer orders the value meal?

Question

Quizplus · Accepted Answer

The customer pays $6.00 for the value meal which includes the burger and fries. The cost of the burger and fries sold separately is $4.00 + $1.50 = $5.50. Therefore, the marginal cost of the drink is the difference between the value meal cost and the cost of the burger and fries separately, which is $6.00 - $5.50 = $0.50. Therefore, the best choice is D.

A Customer at a Fast-Food Restaurant May Choose to Order