10. Ernie’s Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed.
If he increases output to 220 earmuffs, his total cost increases to $2100, and his fixed cost remains $400.
What is Ernie’s marginal cost per earmuff?
(A) $9.55
(B) $5
(C) $105
(D) $35
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