Exhibit 6-8 Costs schedules for producing pizza

-By filling in the blanks in Exhibit 6-8,the marginal cost of the fourth pizza is shown to be equal to:

Question

Exhibit 6-8 Costs schedules for producing pizza
 
-By filling in the blanks in Exhibit 6-8,the marginal cost of the fourth pizza is shown to be equal to:

Quizplus · Accepted Answer

To find the marginal cost of the fourth pizza, we need to look at the change in total cost from producing three pizzas to producing four pizzas. From the table, we can see that the total cost of producing three pizzas is $44, and the total cost of producing four pizzas is $61. The change in total cost is therefore $17 ($61 - $44). Since we are only producing one additional pizza, the marginal cost of the fourth pizza is $17. Therefore, the correct answer is C.

Exhibit 6-8 Costs Schedules for Producing Pizza