Ralph Wants to Buy Some Milk and a Box of Cereal

question 88

Multiple Choice

Ralph wants to buy some milk and a box of cereal. If Ralph 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 Ralph, the marginal cost of the third quart of milk is

• A) zero.
• B) 25 cents.
• C) 75 cents.
• D) $1.

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Definitions:

Acquiring a New Customer

The process businesses undergo to gain additional customers or clients who have not previously purchased from the business.

Business Friendship

A relationship between colleagues or professional contacts that combines elements of friendship and business.

Personal Friendship

Personal friendship involves a mutual bond between people who share interests and affection not necessarily based on business or professional interests.

Unsalable Goods

Products that cannot be sold due to being outdated, damaged, or otherwise not meeting the market's standards.