Bob goes to his favorite hot dog stand, which is offering one hot dog for $2.50 or two for $4.00.Bob's marginal cost of a second hot dog is
A)$1.00.
B)$2.00.
C)$1.50.
D)$2.50.

Question

Quizplus · Accepted Answer

The marginal cost of the second hot dog is the additional cost Bob incurs by buying a second hot dog. Since one hot dog costs $2.50 and two cost $4.00, the additional cost for the second hot dog is $4.00 - $2.50 = $1.50.

Bob Goes to His Favorite Hot Dog Stand, Which Is