Extra Ounce of Meat Marginal Benefit Marginal Cost 1st ounce $2.75 $1.75 2nd oun

Question

Extra Ounce of Meat Marginal Benefit Marginal Cost

1st ounce $2.75 $1.75
2nd ounce $1.75 $1.50
3rd ounce $1.00 $1.25
4th ounce $0.75 $1.00


1)Given this information, how many extra ounces of prime rib should Montie order?

A. 0 ounces

B. 1 ounce

C. 2 ounces

D. 3 ounces

E. 4 ounces



2)f Montie ordered a total of three additional ounces of meat with his prime rib order, he would be:

A. Better off than if he ordered only two extra ounces because he gets more meat

B. Better off than if he ordered only two extra ounces because his total benefits exceed his total costs

C. Worse off than if he ordered only two extra ounces because he is paying $1.25 for a third additional ounce when he values the additional ounce at only $1.00

D. A rational consumer


3) If the company Montie works for is treating him to dinner (and Montie therefore does not have to pay for his own prime rib), how many additional ounces of meat should he order?


A. 0 ounces

B. 1 ounce

C. 2 ounces

D. 3 ounces

E. At least 4 ounces

Explanation / Answer

d d c

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