Exhibit 6-11 Short-run cost curves schedule for pizzeria's hourly production

-In Exhibit 6-11,what is the marginal cost of increasing production from 10 to 20 pizzas per hour?

Question

Exhibit 6-11 Short-run cost curves schedule for pizzeria's hourly production
 
-In Exhibit 6-11,what is the marginal cost of increasing production from 10 to 20 pizzas per hour?

Quizplus · Accepted Answer

The marginal cost is the change in total cost divided by the change in quantity. From the schedule, we can see that increasing production from 10 to 20 pizzas per hour would increase total cost from $70 to $100, resulting in a change in cost of $30. Therefore, the marginal cost of producing 10 additional pizzas is $30/10 pizzas = $3 per pizza.

Exhibit 6-11 Short-Run Cost Curves Schedule for Pizzeria's Hourly Production