pocket. If your bill is more than $10 you need to use your credit card to pay. If you use your credit card, the store adds a surcharge of $1.2 to your bill total. What is the marginal cost of the 3rd chocolate bar? Enter a number only, drop the $ sign.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 5MC
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Stuck on question for hours. Question in Image attachment. Thanks for your help :) 

You're in a store buying chocolate. Each chocolate bar costs you $3.50. You have $10 cash in your
pocket. If your bill is more than $10 you need to use your credit card to pay. If you use your credit
card, the store adds a surcharge of $1.2 to your bill total. What is the marginal cost of the 3rd
chocolate bar? Enter a number only, drop the $ sign.
1.2
4.7
The surcharge is paid on the 3rd unit as the total cost of 3 units is 10.5 and you will need to
use your credit card which means you need to pay the surcharge in addition to $3.5 for the
3rd unit.
Transcribed Image Text:You're in a store buying chocolate. Each chocolate bar costs you $3.50. You have $10 cash in your pocket. If your bill is more than $10 you need to use your credit card to pay. If you use your credit card, the store adds a surcharge of $1.2 to your bill total. What is the marginal cost of the 3rd chocolate bar? Enter a number only, drop the $ sign. 1.2 4.7 The surcharge is paid on the 3rd unit as the total cost of 3 units is 10.5 and you will need to use your credit card which means you need to pay the surcharge in addition to $3.5 for the 3rd unit.
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