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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
1
7
6
2
4
4.5
3
1.5
(i) If the price of a pizza is $6 how many should you buy?
(ii) Provide an example to justify your choice.
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