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The Cost of Your Favorite Coffee Is $6

Question 81

Multiple Choice

The cost of your favorite coffee is $6.50 per cup at the coffee shop. The marginal cost of each cup you drink is _____. The first cup of coffee you drink gives you a marginal benefit of $8. The marginal benefit from the second cup is $6, $4 from the third, $2 from the fourth, and $0 from the fifth. You should drink _____ cups of coffee.


A) $6.50; one
B) $0; five
C) $1; six
D) $6.50; five

Correct Answer:

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