Use the following to answer question(s):
-(Exhibit: Costs of Producing Bagels) Marginal cost reaches its minimum value for the _______ bagel.
A) first
B) third
C) fourth
D) fifth

Question

Use the following to answer question(s):  
-(Exhibit: Costs of Producing Bagels) Marginal cost reaches its minimum value for the _______ bagel.
A) first 
B) third 
C) fourth 
D) fifth

Quizplus · Accepted Answer

Marginal cost is the cost of producing one additional unit. It typically decreases initially as production becomes more efficient, then increases as capacity is stretched. The third bagel represents the point where producing one more bagel (from the second to the third) costs the least compared to any other additional bagel, indicating the minimum marginal cost before it starts to rise due to increasing variable costs or inefficiencies.

Use the Following to Answer Question(s)