Table 5.3
-Table 5.3 presents the cost schedule for Candy's Cakes. If Candy produces two cakes, Candy's marginal cost is
A) $0.
B) $20.
C) $25.
D) $50.

Question

Table 5.3
-Table 5.3 presents the cost schedule for Candy's Cakes. If Candy produces two cakes, Candy's marginal cost is
A) $0. 
B) $20. 
C) $25. 
D) $50.

Quizplus · Accepted Answer

Marginal cost is the change in total cost when one more unit is produced. If producing two cakes increases the cost by $20 compared to producing one cake, then the marginal cost for the second cake is $20.

Table 5.3 -Table 5.3 Presents the Cost Schedule for Candy's Cakes. If