Table 12-12
Betty's Bakery

-Refer to Table 12-12.What is the marginal cost of the 8th cake at Betty's Bakery?

Name: Table 12-12 Betty's Bakery -Refer to Table 12-12.What is the marginal cost of the 8th cake at Betty's Bakery?
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Table 12-12
Betty's Bakery
 
-Refer to Table 12-12.What is the marginal cost of the 8th cake at Betty's Bakery?

Quizplus · Accepted Answer

To find marginal cost, we need to look at the additional cost of producing one more unit. So, the marginal cost of the 8th cake is the difference between the cost of producing 8 cakes and producing 7 cakes. 
Marginal cost = $195 - $168 = $27. 
Therefore, the best choice is B.