Santiago wants to buy some milk and a box of cereal. If he buys 2 quarts of milk at $1 per quart, the box of cereal costs 75 cents. If he buys 3 quarts of milk at $1 per quart, the box of cereal is free. For Santiago, the marginal cost of the third quart of milk is
a. zero.
b. 25 cents.
c. 75 cents.
d. $1.
B
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The above table gives the demand and supply schedules for cat food
If the price is $3.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?
If a hot dog manufacturer acquires a bakery that primarily bakes hot dog buns, you would likely see
a. Higher prices for the hot dogs but lower prices for the buns b. Higher prices for the buns but lower prices for the hot dogs c. Higher prices for both the hot dogs and the buns d. Lower prices for both the hot dogs and the buns
Suppose there are 100 firms of equal size currently sharing the market for peanut butter. If 12 of these firms merge, how much will the Herfindahl-Hirschman Index change?
a. increase by 144 b. decrease by 144 c. increase by 132 d. decrease by 132 e. increase by 232
Which of the following is true about the combination of mops and brooms represented by point E in Figure 1.3 and using PP1?
A. Point E is attainable only if more resources become available or technological advances are made. B. Point E is unattainable if this economy becomes more efficient. C. Point E is attainable if this economy uses more of its available resources. D. Point E is efficient now.