When Aishe's Bar-B-Que produces 10 pork sandwiches,the total cost is $5.When 11 pork sandwiches are produced,the total cost rises to $6.From this we know that the marginal cost of the eleventh pork sandwich:
A)is equal to the average cost of 11 pork sandwiches.
B)is greater than the average cost of 11 pork sandwiches.
C)is less than the average cost of 11 pork sandwiches.
D)can't be calculated without more information.

Question

Quizplus · Accepted Answer

The fact that the cost increased by $1 for the 11th sandwich means that the marginal cost of the 11th sandwich is $1. The average cost of 11 sandwiches is ($6 total cost for 11 sandwiches)/(11 sandwiches) = $0.545 per sandwich. Therefore, the marginal cost ($1) is greater than the average cost ($0.545) for the 11th sandwich.

When Aishe's Bar-B-Que Produces 10 Pork Sandwiches,the Total Cost Is