Chin purchases five protein bars at a price of $3 each. The marginal benefit he receives from each bar is $5 for the first bar, $4.50 for the second bar, $4 for the third bar, $3.50 for the fourth bar, and $3 for the fifth bar. The marginal cost of producing the bars is $2 each. What is Chin's consumer surplus on the fifth bar?
A)$0
B)$.50
C)$1
D)$2

Question

Quizplus · Accepted Answer

The consumer surplus on the fifth bar is the difference between the marginal benefit ($3) and the price paid ($3), which equals $0.

Chin Purchases Five Protein Bars at a Price of $3