Decisions at the Margin

You love sushi, and you can eat many pieces in a single meal. The following table shows your Marginal Benefit (MB) from each piece of sushi:

Sushi:

MB ($)

MC ($)

Is MB > MC? Enter "yes" or "no":

1st piece

MC. 4

2nd piece

MC. 3

3rd piece

MC. 2.5

4th piece

MC. 1

5th piece

MC . 0.25

6th piece

MC. -0.1

7th piece

MC. -0.35

Blank 14

8th piece

MC . -0.55

9th piece

MC . -0.65

Assume that you are making all your decisions according to the Cost-Benefit Principle.

You have already paid $15.99 to enter this all-you-can-eat sushi buffet restaurant. This is not refundable. Complete the Marginal Cost (MC) column in the table above.

Then complete the last column. For each piece of sushi, determine whether your Marginal Benefit of eating it is larger than the Marginal Cost of buying it.

How many pieces of sushi would you buy and eat in total? (Enter a number from 0 to 10.)