Pauli's Pizza offers one slice for $2, two slices for $3.50, three slices for $4.50, and four slices for $5.00. Sal orders two slices. From this we know that Sal's marginal benefit from the second slice must be at least and the marginal benefit from the third slice must be less than .

A) $3.50; $4.50
B) $3.50; $1.00
C) $1.50; $1.00
D) $1.50; $4.50

C) $1.50; $1.00 

Explanation:

A rational consumer would continue consumption if marginal benefit is greater or equal to marginal cost. So , Sals marginal benefit must be at least equal to her marginal cost.

Cost of one pizza = $2

Cost of two pizzas = $3.50

Marginal Cost of second pizza = $3.50 - $2 = $1.50

Cost of three pizzas = $4.50

Marginal Cost of second pizza = $4.50 - $3.50 = $1

Her marginal benefit must be at least $1.50; $1.00 

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