Question

A customer at a fast-food restaurant may choose to order a burger for $4.00 and fries for $1.50, or order a value meal (that includes the burger, fries, and a drink) for $6.00. What is the marginal cost of the drink if the customer orders the value meal?

A) $1.00.
B) $2.00.
C) $0.50.
D) $3.50.

Answer 1

The marginal cost of the drink in the value meal is the additional cost beyond the burger and fries bought separately, which is $0.50.

Step-by-step explanation:

The question is asking to determine the marginal cost of the drink in the value meal at a fast-food restaurant. To find this, you subtract the combined cost of the burger and fries when purchased separately from the cost of the value meal. A burger costs $4.00, and fries cost $1.50, which add up to $5.50. Since the value meal (including the burger, fries, and a drink) is priced at $6.00, the additional cost or marginal cost of the drink is $6.00 - $5.50, which is $0.50.