Answer: To determine the marginal cost of the third taco for Jeremy, we need to compare the cost of buying it individually to the cost of buying it as part of the value meal.
Buying two tacos individually:
- Cost of two tacos: 2 tacos * $0.75/taco = $1.50
Buying the value meal with three tacos:
- Cost of the value meal: $3.00
To calculate the marginal cost, we subtract the cost of buying the value meal from the cost of buying two tacos individually:
- Marginal cost = Cost of buying two tacos individually - Cost of the value meal
- Marginal cost = $1.50 - $3.00
- Marginal cost = -$1.50
The negative value indicates that buying the value meal is more cost-effective than buying the third taco individually. Therefore, the marginal cost of the third taco for Jeremy would be $0 (option A).