Question

Jacob and Mason go to a diner that sells burritos for $5 and tacos for $3. They agree to split the lunch bill evenly. Mason chooses a taco. The marginal cost to Jacob of ordering a burrito instead of a taco is________

Answer 1

Answer:

$1

Explanation:

The marginal cost is the extra costs that are to be incurred for producing an additional units

Provided that

Burritos = $5

Tacos = $3

So, the Total sales price = $8

Now this sales price is split evenly, that means it would be given the $4 to Jacob and the remaining 4 to Mason

So, the marginal cost would be

= $5 - $4

= $1