Liam wants to buy some milk and a box of cereal. If Liam buys 4 gallons of milk at $3.00 per gallon, the box of cereal costs $2.00 . If he buys 5 gallons of milk, the box of cereal is free. For Liam, the marginal cost of buying a fifth gallon of milk is
a. zero.
b. $1.00.
c. $2.00.
d. $3.00.
B
Economics
You might also like to view...
What are the factors that affect GDP according to the aggregate production function used by Solow?
What will be an ideal response?
Economics
In the long run, a monopolistic competitor's price will equal: a. marginal revenue
b. average total cost. c. marginal cost. d. minimum average total cost.
Economics