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Exhibit 6-10 Short-Run Cost Schedule for Book Publisher's Hourly Production

Question 100

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Exhibit 6-10 Short-run cost schedule for book publisher's hourly production  Total  Output  Total  Variable Cost  Total  Cost  0 cases of books $0$2001100300215035032504504450650\begin{array} { | c | c | r | } \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 \text { 0 cases of books } &\$0 & \$ 200 \\1 & 100 & 300 \\2 & 150 & 350 \\3 & 250 & 450 \\4 & 450 & 650 \\\hline\end{array} In Exhibit 6-10, the marginal cost of increasing production from 2 to 3 cases of books is:


A) higher than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost curve must be rising in between 2 and 3 cases.
B) higher than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in between 2 and 3 cases.
C) lower than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost must be greater than average total cost between 2 and 3 cases.
D) lower than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in between 2 and 3 cases.

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