A grocery store sells soup for $1.50 a can, or $2.50 for two cans.To a customer, the marginal cost of buying the second can of soup is
A)$1.
B)$1.25.
C)$1.50.
D)$2.50.

Question

Quizplus · Accepted Answer

Buying one can of soup costs $1.50. Buying two cans of soup at $2.50 means each can costs $1.25 ($2.50/2). Therefore, the marginal cost of buying the second can is the difference between the price of the second can and the price of the first can, which is $1.25 - $1.50 = -$0.25. Since the marginal cost is negative, it means that the customer actually saves money by buying the second can, making it the best choice.

A Grocery Store Sells Soup for $1