The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market.

-Using the table, Fred's marginal cost of the 200th slice of pizza is
A) $2.50.
B) $6.
C) $0.50.
D) $20.

Question

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market.
 
-Using the table, Fred's marginal cost of the 200th slice of pizza is
A) $2.50. 
B) $6. 
C) $0.50. 
D) $20.

Quizplus · Accepted Answer

The marginal cost is the cost of producing one additional unit. If the table shows that the cost of producing 199 slices is $497.50 and the cost of producing 200 slices is $500, the marginal cost of the 200th slice is $500 - $497.50 = $2.50.

The Table Below Shows the Supply Schedules for Fred's Pizza