(Table: Costs of Producing Bagels) Look at the table Cost of Producing Bagels.The marginal cost of producing the sixth bagel is:
A)$0.10.
B)$0.15.
C)$0.20.
D)$0.80.

Question

(Table: Costs of Producing Bagels) Look at the table Cost of Producing Bagels.The marginal cost of producing the sixth bagel is:
A)$0.10. 
B)$0.15. 
C)$0.20. 
D)$0.80.

Quizplus · Accepted Answer

The marginal cost is the increase in cost when one more unit is produced. Based on the table, the total cost of producing 5 bagels is $5.00 and the total cost of producing 6 bagels is $5.20. Therefore, the marginal cost of producing the 6th bagel is $0.20 ($5.20 - $5.00). Thus, the correct answer is (C) $0.20.

(Table: Costs of Producing Bagels) Look at the Table Cost