Marginal Analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. This table displays a marginal analysis of buying an extra slice of pizza. The Marginal Benefit column represents the willingness to pay for each slice. Use the table to determine which of the following statements is most true? A) You will purchase 1 slice of pizza because the Marginal Benefit of the second slice exceeds the marginal Cost. B) You will purchase 2 slices of pizza because the Marginal Benefit of the third slice exceeds the marginal Cost. C) You will purchase 3 slices of pizzas because the Marginal cost of the fourth slice exceeds the Marginal Cost. D) You will purchase 2 slices of pizza because the marginal Cost of the third slice exceeds the marginal Benefit.
Marginal Analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. This table displays a marginal analysis of buying an extra slice of pizza. The Marginal Benefit column represents the willingness to pay for each slice. Use the table to determine which of the following statements is most true?
A) You will purchase 1 slice of pizza because the Marginal Benefit of the second slice exceeds the marginal Cost.
B) You will purchase 2 slices of pizza because the Marginal Benefit of the third slice exceeds the marginal Cost.
C) You will purchase 3 slices of pizzas because the Marginal cost of the fourth slice exceeds the Marginal Cost.
D) You will purchase 2 slices of pizza because the marginal Cost of the third slice exceeds the marginal Benefit.
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