Exhibit 7-10 Short-run cost schedule for book publisher's hourly production $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Total } \
\text { Output }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Variable Cost }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Cost }
\end{array} \
\hline 0 \text { cases of books } & \$ 0 & \$ 200 \
1 & 100 & 300 \
2 & 150 & 350 \
3 & 250 & 450 \
4 & 450 & 650 \
\hline
\end{array}$$
-In Exhibit 7-10, the marginal cost of increasing production from 2 to 3 cases of books is:

Question

Exhibit 7-10 Short-run cost schedule for book publisher's hourly production $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Total } \
\text { Output }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Variable Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} \
\hline 0 \text { cases of books } & \$ 0 & \$ 200 \
1 & 100 & 300 \
2 & 150 & 350 \
3 & 250 & 450 \
4 & 450 & 650 \
\hline
\end{array}$$
-In Exhibit 7-10, the marginal cost of increasing production from 2 to 3 cases of books is:

Quizplus · Accepted Answer

The marginal cost is the change in total cost when output is increased by one unit. From 2 to 3 cases, total cost increases from $350 to $450, so the marginal cost is $100.

Exhibit 7-10 Short-Run Cost Schedule for Book Publisher's Hourly Production