Asked by abdullah Mohammed on May 02, 2024
Verified
(Table: Costs of Producing Bagels) Use Table: Cost of Producing Bagels.Marginal cost reaches its minimum value for the _____ bagel.
A) first
B) third
C) fourth
D) fifth
Marginal Cost
The financial commitment for the creation of an additional unit of a product or service.
Producing Bagels
The process of making bagels, which involves mixing, shaping, boiling, and baking dough in a specific manner.
Total Cost
The sum of fixed and variable costs incurred by a firm in producing or offering a product or service.
- Grasp the understanding of marginal cost and its impact on decisions related to production.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
B
Explanation :
Marginal cost is the cost of producing one more unit of a good. It typically decreases initially as production becomes more efficient, then increases as production capacity is maximized. Without the specific table data, the general principle is that the minimum marginal cost is reached before these increases, which often happens after a few units are produced. Given the options and assuming a typical production scenario, the third bagel would likely represent the point where marginal cost is minimized before it starts to rise due to factors like increased labor or material costs needed to maintain production.
Learning Objectives
- Grasp the understanding of marginal cost and its impact on decisions related to production.
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