(Table: Costs of Birthday Cakes) Annie has a bakery that specializes in birthday cakes, and her variable costs of producing cakes are shown in the table Costs of Birthday Cakes.Assume that her fixed costs are $10.What is the marginal cost of the second cake?
A)$5
B)$10
C)$25
D)$35

Question

Quizplus · Accepted Answer

The marginal cost is the cost of producing one additional cake. To find it, we need to look at the change in total cost when producing the second cake:

Marginal cost = (Total cost of 2 cakes - Total cost of 1 cake) / (Number of cakes produced)

Marginal cost = (($10 + $10) - ($10 + $5)) / 2 = $5

Therefore, the answer is B, $10.

(Table: Costs of Birthday Cakes) Annie Has a Bakery That