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marley brown
on Dec 12, 2024

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

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

Marginal Cost

The increase in cost resulting from the production of one additional unit of output.

Quarts Of Milk

A unit of volume measurement used primarily in the United States to measure liquids, with one quart equivalent to roughly 0.946 liters; often used to measure milk quantity.

Cereal

Grain-based food processed or whole, often consumed as breakfast and served either hot or cold, usually in milk or yogurt.

  • Acquire knowledge about the contribution of marginal analysis to economic decision-making.
  • Acquire insights into the concept of marginal benefits and marginal costs within the context of decision-making.
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CJ
Carlyn JohnsonDec 18, 2024
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