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, Johnny's marginal cost of the 600th slice of pizza is
A) $3.50.
B) $12.50.
C) zero.
D) $1.50.

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, Johnny's marginal cost of the 600th slice of pizza is
A) $3.50. 
B) $12.50. 
C) zero. 
D) $1.50.

Quizplus · Accepted Answer

The marginal cost is the additional cost of producing one more unit. If the table shows that the cost of producing the 600th slice of pizza is $3.50 more than the cost of producing the 599th slice, then the marginal cost is $3.50.

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