Question

Bruno's gelato café has a fixed cost of $100. the variable cost of producing 10 gelatos is $20, and the variable cost of producing 11 gelatos is $22. what is the total cost and marginal cost of producing 11 gelatos? $122; $2 $122; $22 $42; $2 $42; $22

Answer 1

The answer is of the cost of gelatos is $2

Answer 2

Total cost is $122 (variable cost+fixed costs)

Marginal cost is $2. This is the cost of producing each additional unit of a good. 10/$20= $2 per unit and 11/$22= $2/unit so the cost of each additional unit is $2.