If a store has a “buy one, get one free” sale and an item costs $$ 10$ , what is the marginal cost of the second item?

$$ 7.50$

No worries! We‘ve got your back. Try BYJU‘S free classes today!

$$ 10$

No worries! We‘ve got your back. Try BYJU‘S free classes today!

$$ 5$

No worries! We‘ve got your back. Try BYJU‘S free classes today!

$$ 15$

No worries! We‘ve got your back. Try BYJU‘S free classes today!

$$ 0$

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is E
$$ 0$

Explanation for correct option:
Marginal cost is the additional cost for each additional unit.
If a store has a “buy one, get one free” sale. So, when the first product is bought, the second product is obtained for free.
The person is only paying for a single product.
So, the cost of the additional unit is $0$ .
Therefore, the marginal cost of the second product is $$ 0$ .
Hence, option (E) is correct.

Suggest Corrections

Join BYJU'S Learning Program