Asked by James Lombino on Apr 24, 2024
Verified
If you eat at a Las Vegas casino that charges $12 for its all you can eat buffet, then the marginal cost of your third trip to the buffet line is
A) zero.
B) $4.
C) $12.
D) $36.
Marginal Cost
The cost to produce one additional unit of a product or service.
Buffet
A meal consisting of various dishes set out on a table or sideboard from which guests can serve themselves.
- Assess the opportunity expense incurred from personal choices and market transactions.
Verified Answer
KB
Kensley Baugh6 days ago
Final Answer :
A
Explanation :
The marginal cost refers to the additional cost of consuming one more unit of a good or service. In the case of an all-you-can-eat buffet, once the initial price is paid, additional trips to the buffet line incur no additional cost, making the marginal cost of the third trip zero.
Learning Objectives
- Assess the opportunity expense incurred from personal choices and market transactions.