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Harlamova29_29 [7]
3 years ago
7

An entrenpeneur knits sweaters for sale. The entrenpeneur has fixed costs of $100. When he makes 10 sweaters in one month, he mu

st spend $15 on wool. When he makes 11 sweaters in one month, he must spend $17 on wool. If he has no other cost, what is the marginal cost?
Business
1 answer:
Likurg_2 [28]3 years ago
8 0

Answer:

marginal cost = $2

Explanation:

given data:

cost on wool when 10 sweater made in one month = $15

cost on wool when 11 sweater made in one month = $17

fixed cost = $100

In case of no other cost present, marginal cost is given by

Marginal cost = cost of eleven sweaters - cost of ten sweaters

                       = $17 -$15

                       = $2

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