Use the Following to Answer Question(s)

question 45

Multiple Choice

Use the following to answer question(s) :
-(Exhibit: Costs of Producing Bagels) The marginal cost of producing the sixth bagel is:

• A) $0.10.
• B) $0.15.
• C) $0.30.
• D) $0.80.

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Definitions:

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.

Variable Cost

Charges that directly correlate with the amount of goods produced or the level of output.

Fixed Costs

Expenses that do not change with an increase or decrease in the number of goods or services produced, such as rent, salaries, and insurance.

Break-Even Point

The point at which total revenue equals total costs, resulting in neither profit nor loss.