If you can download 10 ring tones for your cell phone for $10 or you could download 11 ring tones for your cell phone for $10.50, then the marginal cost of the eleventh ring tone is
A) $0.50.
B) $10.00.
C) $10.50.
D) $20.50.

Question

Quizplus · Accepted Answer

The marginal cost is the additional cost of one more unit. In this case, the additional cost of the eleventh ringtone is $0.50 ($10.50 - $10). Therefore, it is better to download 11 ring tones for $10.50.

If You Can Download 10 Ring Tones for Your Cell