Asked by kkoln kkijknjn on Jul 25, 2024
Verified
Suppose Cyd knows the average total cost of producing 9 scones is $5,while the average total cost of producing 10 scones is $5.20.What is the marginal cost of the tenth scone?
A) $7.00
B) $5.20
C) $0.20
D) $5.00
Marginal Cost
The augmentation in cumulative cost resulting from the manufacture of an additional unit.
Average Total Cost
The total cost of production divided by the quantity produced, representing the average cost per unit of output.
Scones
Scones are a type of baked good, often lightly sweetened and sometimes glazed, typically made of wheat, barley or oatmeal, and baking powder, and served with tea.
- Examine the influence of production level alterations on marginal cost.
Verified Answer
MA
Myranda ArandaRubioJul 31, 2024
Final Answer :
A
Explanation :
The marginal cost of the tenth scone is calculated by the increase in total cost when production is increased from 9 to 10 scones. The total cost for 9 scones is $5 * 9 = $45, and for 10 scones is $5.20 * 10 = $52. The marginal cost is $52 - $45 = $7.
Learning Objectives
- Examine the influence of production level alterations on marginal cost.