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Ernie's Earmuffs produces 200 earmuffs per year at a totoal cost of $2000 and $400 of its cost is fixed. If he increases output to 220 earmuffs, his total cost increases to $2,100, and his fixed cost remains $400.00 What is Ernie's marginal cost per earmuff?

a. $9.55
b. $35.00
c. $5.00
d. $105.00

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941193

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