Suppose Cyd knows the average total cost of producing 9 scones is $5, while the average total cost of producing 10 scones is $5.20.What is the marginal cost of the 10th scone?
A)$7
B)$5.20
C)$0.20
D)$5

Question

Quizplus · Accepted Answer

The marginal cost of the 10th scone is the change in total cost when producing one more scone. The total cost for 9 scones is $45 (9 x $5), and for 10 scones is $52 (10 x $5.20). The marginal cost is $52 - $45 = $7.

Suppose Cyd Knows the Average Total Cost of Producing 9