Use the following to answer question(s):
-(Exhibit: Costs of Producing Bagels) The marginal cost of producing the second bagel is:
A) $0.05.
B) $0.10.
C) $0.30.
D) $0.40.

Question

Use the following to answer question(s):  
-(Exhibit: Costs of Producing Bagels) The marginal cost of producing the second bagel is:
A) $0.05. 
B) $0.10. 
C) $0.30. 
D) $0.40.

Quizplus · Accepted Answer

The marginal cost is the change in total cost divided by the change in quantity produced. Looking at the table, producing one bagel costs $0.25 and producing two bagels costs $0.35. The change in total cost is $0.10 ($0.35 - $0.25) and the change in quantity produced is 1 (from 1 bagel to 2 bagels). Therefore, the marginal cost of producing the second bagel is $0.10.

Use the Following to Answer Question(s)