Number of Cakes VC MC AVC FC TC ATC 50 1 30 2 50 25 4 155 Table 8.3 Table 8.3 presents the cost schedule for Candy's Cakes. If Candy produces three cakes, Candy's marginal costs are: A. $O B. $25 C. $41.67 D. $75

Number of Cakes VC MC AVC FC TC ATC 50 1 30 2 50 25 4 155 Table 8.3 Table 8.3 presents the cost schedule for Candy's Cakes. If Candy produces three cakes, Candy's marginal costs are: A. $O B. $25 C. $41.67 D. $75

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?

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Question

Number of
Cakes
VC
MC
AVC
FC
TC
ATC
50
1
30
2
50
3
25
4
155
Table 8.3
Table 8.3 presents the cost schedule for Candy's Cakes. If Candy produces three cakes, Candy's marginal costs
are:
A. $O
B. $25
C. $41.67
D. $75

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