Jasmin purchases a coffee cup from her local gas station for $5.00 that can be refilled at any time for $0.50. The marginal cost of her 10th cup of coffee is:

Question

Quizplus · Accepted Answer

Since the cost to refill the coffee cup is $0.50 after purchasing it for $5.00, the marginal cost of each subsequent cup is simply $0.50. Therefore, the marginal cost of Jasmin's 10th cup of coffee is also $0.50.

Jasmin Purchases a Coffee Cup from Her Local Gas Station