Ted has decided to buy a burger and fries at a restaurant, but is considering whether to buy a drink as well. If the price of a burger is $2, fries are $1, drinks are $1, but a value meal with all three costs $3.80, the marginal cost to Ted of the drink is:

Question

Ted has decided to buy a burger and fries at a restaurant, but is considering whether to buy a drink as well. If the price of a burger is $2, fries are $1, drinks are $1, but a value meal with all three costs $3.80, the marginal cost to Ted of the drink is:​

Quizplus · Accepted Answer

The marginal cost of the drink is the additional cost of adding the drink to the burger and fries. Buying the burger and fries separately costs $3, while the value meal costs $3.80, so the marginal cost of the drink is $0.80.

Ted Has Decided to Buy a Burger and Fries at a Restaurant