Marginal cost of the twentieth gallon of gas


Problem: A driver wishes to buy gasoline and have her car washed. She finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons, the car wash is free. Thus the marginal cost of the twentieth gallon of gas is:

A) - $2.00.

B) $0.00.

C) $1.00.

D) $2.00.

E)  none of the above.

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Microeconomics: Marginal cost of the twentieth gallon of gas
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