Exhibit 6-12 Cost Schedule for Producing Pizza In Exhibit 6-12, the Marginal Cost of Producing the 3rd

Exhibit 6-12 Cost schedule for producing pizza $$\begin{array} { | c | c | c | c | } \hline \text { Pizzas } & \begin{array} { c } \text { Fixed } \\\text { Cost }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} \\\hline 0 & \$ & \$ & \$ \\\hline 1 & & & 48 \\\hline 2 & & 17 & \\\hline 3 & & 27 & \\\hline 4 & & & 78 \\\hline 5 & 40 & & \\\hline 6 & & 64 & \\\hline 7 & & 80 & \\\hline\end{array}$$ In Exhibit 6-12, the marginal cost of producing the 3rd pizza

A) is higher than the average total cost of 3 pizzas, so the average total cost curve is increasing at a quantity of 3 pizzas.
B) is lower than the average total cost of 3 pizzas, so the average total cost curve is decreasing at a quantity of 3 pizzas.
C) is equal to the average total cost of 3 pizzas, so the average total cost curve is minimized at a quantity of 3 pizzas.
D) is higher than the average fixed cost of 3 pizzas, so the average fixed cost curve is increasing at a quantity of 3 pizzas.