Pauli's Pizza Offers One Slice for $2,two Slices for $3

question 33

Multiple Choice

Pauli's Pizza offers one slice for $2,two slices for $3.50,three slices for $4.50,and four slices for $5.00.The marginal cost of the third slice is:

• A)$4.50.
• B)$10.
• C)$1.
• D)$2.

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Definitions:

Total Costs

The aggregate of all financial outlays involved in the creation of goods or services, covering both stable and changeable costs.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Free-Rider Problem

The inability of potential providers of an economically desirable good or service to obtain payment from those who benefit, because of nonexcludability.

Highly Profitable

Describing a business or activity that generates a significantly higher amount of earnings compared to its costs.