Marginal worth Marginal cost Adam stops at 2 cakes Daily output of cakes Units of product Y 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0 1 2 3 4 5 6 7 8 9 10 1.05Y 2 At 2 cakes: marginal worth 1.05Y · marginal cost 1.00Y Worth still beats cost — bake the 2nd cake.