Use the Following to Answer Question 160 -Kaile Cakes Produces 10 Cakes Per Day

question 53

Multiple Choice

Use the following to answer question 160: $$\begin{array}{l}\text { Table: Output and Marginal Cost }\\\begin{array} { l c } \hline \text { Output } & \text { Marginal Cost } \\\hline 1 & 15 \\2 & 10 \\3 & 5 \\4 & 8 \\5 & 12 \\6 & 20 \\\hline\end{array}\end{array}$$
-Kaile Cakes produces 10 cakes per day.The marginal cost of the tenth cake is $24,and the average total cost of 10 cakes is $6.The average total cost of nine cakes is:

• A) $4.
• B) $5.
• C) $6.
• D) $8.

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Definitions:

Average Total Cost Curve

A graphical representation showing the average cost of production per unit at different levels of output, combining both fixed and variable costs.

Minimize Losses

A strategy employed to reduce the amount of loss in financial, operational, or other terms as much as possible.

Perfect Competition

A market structure where many firms offer products or services that are similar, leading to a level playing field.

Product Differentiation

The act of setting a product or service apart from those in the market to enhance its attractiveness to a certain target group.