Question

Joan loves to eat sushi. Her first piece of sushi normally gives her a marginal benefit of $5. Each additional piece creates a marginal benefit that declines by $0.25 per piece. If her favorite sushi bar charges $2.75 per piece of sushi, how many pieces should she eat

Answer 1

10 pieces

Step-by-step explanation:

The computation is shown below:

Quantity MU Price

1 $5 $2.75

2 $4.75 $2.75

3 $4.50 $2.75

4 $4.25 $2.75

5 $4 $2.75

6 $3.75 $2.75

7 $3.50 $2.75

8 $3.25 $2.75

9 $3 $2.75

10 $2.75 $2.75

So she should eat 10 pieces because the MU and Price are equivalent to each other