Use the following to answer questions:
-(Table: Costs of Birthday Cakes) Look at the table Costs of Birthday Cakes. Assume that fixed costs are $10. What is the marginal cost of the fourth cake?
A) $8
B) $10
C) $25
D) $35

Question

Use the following to answer questions: 
-(Table: Costs of Birthday Cakes) Look at the table Costs of Birthday Cakes. Assume that fixed costs are $10. What is the marginal cost of the fourth cake?
A) $8 
B) $10 
C) $25 
D) $35

Quizplus · Accepted Answer

The marginal cost is the change in total cost when one more unit is produced. If fixed costs are $10, the total cost for the first three cakes minus the total cost for the first four cakes gives the marginal cost of the fourth cake.

Use the Following to Answer Questions