a baker calculates that by spending $16 on labor and materials, she can bake 10 cakes a day. $24 will allow her to bake 12 cakes, while $36 spent on labor and materials produces 14 cakes. in terms of capital and labor, the baker has
The correct answer that would best complete the given statement above would be DECREASING MARGINAL COST. Based on the given situation above about the baker, in terms of capital and labor presented, the baker has a decreasing marginal cost. Marginal cost is defined as the additional cost when producing another extra item of a product.
