Kaile Cakes produces 10 cakes per day.The marginal cost of the tenth cake is $24,and average total cost of 10 cakes is $6.The average total cost of 9 cakes is:
A)$4.
B)$5.
C)$6.
D)$8.

Question

Quizplus · Accepted Answer

If the average total cost of 10 cakes is $6, then the total cost of producing 10 cakes is $60. If the marginal cost of the 10th cake is $24, then the total cost of producing 9 cakes is $36 ($60 - $24). Therefore, the average total cost of 9 cakes is $4 ($36/9). So, the correct answer is A.

Kaile Cakes Produces 10 Cakes Per Day