The local pizza restaurant is advertising a special. If you buy one individual sized pizza, you get the next one at 25% off, the third one for 50% off and the fourth one for 75% off. Your marginal benefit from eating pizza is shown in the table below:
|
# Pizzas
|
Marginal Benefit (MB)
|
Marginal Cost (MC)
|
|
0
|
0
|
|
|
1
|
7
|
6
|
|
2
|
4
|
4.5
|
|
3
|
2
|
3
|
|
4
|
1
|
1.5
|
(i) If the price of a pizza is $6 how many should you buy?
(ii) Provide an example to justify your choice.