Suppose Cyd knows the average total cost of producing 9 scones is $5,while the average total cost of producing 10 scones is $5.20.What is the marginal cost of the tenth scone?

A) $7.00
B) $5.20
C) $0.20
D) $5.00

Marginal Cost

The augmentation in cumulative cost resulting from the manufacture of an additional unit.

Average Total Cost

The total cost of production divided by the quantity produced, representing the average cost per unit of output.

Scones

Scones are a type of baked good, often lightly sweetened and sometimes glazed, typically made of wheat, barley or oatmeal, and baking powder, and served with tea.