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

Question

Quizplus · Accepted Answer

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.

Suppose Cyd Knows the Average Total Cost of Producing 9