Use the Following to Answer Question

question 100

Multiple Choice

Use the following to answer question:
-(Table: Costs of Birthday Cakes) Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the marginal cost of the second cake?

• A)$5
• B)$10
• C)$25
• D)$35

---

Definitions:

Total Expenses

The sum of all costs incurred by a business or individual in a specific period.

Total Revenue

The gross income generated from the core business activities of a company, including the sale of products and services.

Liability

Debts or monetary commitments that a firm has to settle with others, requiring the provision of economic benefits such as cash, products, or services over a period.

Expense

Costs incurred by a business in the process of earning revenue, typically categorized as fixed, variable, or periodic.