The Average Variable Cost of Producing Ice Cream Sundaes Are

question 289

Multiple Choice

The average variable cost of producing ice cream sundaes are minimized when 100 sundaes are produced. The total cost of producing 100 sundaes is $500. If fixed cost of production is $200, what is the marginal cost of producing the 100th sundae?

• A) $2
• B) $3
• C) $5
• D) indeterminate from the given information

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