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

Question

Business

Meghan Buchanan

23 April, 19:13

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

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Answers (1)

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Jayce · Answer 1

marginal cost = $2

Explanation:

given dа ta:

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