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Marginal Costs

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.

Solution Summary

The solution answers the question(s) below.

$2.19