Abakery 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

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.

Where ΔTC is the total cost and ΔQ is the quantity.

Substitute the respective values in the above formula.

Hence, the Marginal Cost of the new baker is $1.60.