Question

A grocery store is running a "buy-one-get-another-at-one-half-off" promotion on a dozen doughnuts. So the first dozen is $6 and the second would be $3. A person would buy the second dozen if their marginal benefit from the second dozen doughnuts is: Select one:

a. greater than $3

b. greater than $6

c. greater than $9

d. less than $3

Answer 1

a. greater than $3

Step-by-step explanation:

If the marginal benefit is greater than the marginal cost, then, a rational person consumes one additonal unit of the product.

In this case, the marginal cost of an additional dozen of donuts is $3, therefore, the marginal benefit has to be greater than $3 for a person to decide to buy it.