Question

calculating marginal cost
use the information shown in the chart and the drop - down menus to answer these questions.
the marginal cost to produce the first pie is $1.00.
the marginal cost for producing the fourth pie is $0.50.
the difference in marginal cost between the production of the second pie and the seventh pie is
pies produced per day\ttotal cost\tmarginal cost
1 pie\t$1.00\t$1.00
2 pies\t$1.50\t$0.50
3 pies\t$1.75\t$0.25
4 pies\t$2.25\t$0.50
5 pies\t$3.25\t$1.00
6 pies\t$5.00\t$1.75
7 pies\t$7.25\t$2.75

Explanation:

Step1: Identify marginal costs

Marginal cost of 2nd pie is $0.50, of 7th pie is $2.75.

Step2: Calculate difference

Subtract smaller from larger: $2.75 - 0.50$.

Answer:

$2.25$