If a Local Pizzeria Charges $2

question 36

Multiple Choice

If a local pizzeria charges $2.50 per slice or $8.00 for a small pizza equal in size to four slices, what would be the marginal cost of a 4^th slice of pizza?

• A)$0.50
• B)$2.00
• C)$2.50
• D)$8.00

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Definitions:

Average Rate

The mean value of rates over a specified period or under certain conditions.

Mortgage Rate

The interest rate charged on a mortgage, typically expressed as an annual percentage.

GST

Goods and Services Tax, a type of value-added tax imposed on the majority of goods and services that are sold within the country for local use.

Supplies

Materials and goods held for use in the production process or office operations, often considered short-term assets in financial accounting.