While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $3. For Jordan, the marginal cost of the third taco would be
A) zero.
B) 50 cents.
C) 80 cents.
D) $1.

Question

Quizplus · Accepted Answer

Since Jordan only wants two tacos and a medium drink, the cost would be $1.50. However, he notices that the value meal would give him an extra taco and cost only $3. Therefore, the marginal cost of the third taco would be the difference between the cost of the value meal and the cost of his original order, which is $3 - $1.50 = $1.50. Since the value meal comes with three tacos, the marginal cost of the third taco would be $1.50 divided by 3 tacos, which is 50 cents.

While Waiting in Line to Buy Two Tacos at 80