Mary knits sweaters for sale. Her fixed costs are $100. When she makes 10 sweaters in one month, Mary must spend $15 on wool. To make eleven sweaters in one month, she must spend $17 on wool. If she has no other costs, what is the marginal cost of the eleventh sweater

$2

Explanation:

Given that

The fixed cost = $100

Cost on wool if 10 sweater are made in a month = $15

Cost on wool if 11 sweater are made in a month = $17

Since it involves no other cost

So, the marginal cost of the eleventh sweater is

= Cost on wool when 11 sweater made in one month - Cost on wool when 10 sweater made in one month

= $17 - $15

= $2

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