Suppose Cyd knows the average total cost of producing nine 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

Question

Quizplus · Accepted Answer

The marginal cost of the tenth scone is the change in total cost when the quantity produced increases from nine to ten. The total cost for 9 scones is 9 * $5 = $45, and for 10 scones is 10 * $5.20 = $52. The marginal cost is $52 - $45 = $7.00.

Suppose Cyd Knows the Average Total Cost of Producing Nine