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Summary Of Mceachern, CT: Cengage Learning
The owner of the pizzeria should do a comparison of the expected marginal benefit as well as the marginal cost of increasing the radius of delivery by a one mile (McEachern, 2015, p.8). Also, taking into consideration if the marginal benefit exceeds the expected marginal cost. Not to mention that the additional expenses that are included with increasing the radius of his pizza delivery by one mile. It would be a waste of time to expand the radius of delivery to an additional mile if he would lose money.
McEachern, W.A. (2015). ECON macroeconomics (4th ed.). Stamford, CT: Cengage Learning.
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