Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3.They agree to split the lunch bill evenly.Ed chooses a hot dog.The marginal cost to Joe if he orders a hamburger, instead of a hot dog, is
A)$1.
B)$2.
C)$2.50.
D)$3.

Question

Quizplus · Accepted Answer

The marginal cost to Joe for choosing a hamburger over a hot dog is the difference in price between the two, which is $5 - $3 = $2. Since they split the bill evenly, Joe's share of the additional cost is $2/2 = $1.

Joe and Ed Go to a Diner That Sells Hamburgers