MATH SOLVE

4 months ago

Q:
# A bakery is considering whether or not to hire an extra baker for the night shift. If that baker would earn $20 per hour, work an 8-hour shift, and produce 100 pastries that would sell for $3 each, the marginal cost of producing an additional pastry is _____.

Accepted Solution

A:

Answer:
The Marginal Cost of the new baker is $1.60.
Step-by-step explanation:
Consider the provided information.
Baker would earn $20 per hour, that means
Baker Wage = $20 per hour
Baker will work for 8 hours
So the total money baker will earn is:
Total cost = 8 × 20 = $160
Baker produce 100 pastries.
That means the quantity is 100.
[tex]\text{Marginal Cost}=\frac{\triangle TC}{\triangle Q}[/tex]
Where ΔTC is the total cost and ΔQ is the quantity.
Substitute the respective values in the above formula.
[tex]\frac{160}{100}=1.6[/tex]
Hence, the Marginal Cost of the new baker is $1.60.