Exhibit 6-12 Cost schedule for producing pizza

-By filling in the blanks in Exhibit 6-12,the marginal cost of the third pizza is shown to be equal to:

Question

Exhibit 6-12 Cost schedule for producing pizza
 
-By filling in the blanks in Exhibit 6-12,the marginal cost of the third pizza is shown to be equal to:

Quizplus · Accepted Answer

The marginal cost of the third pizza is the change in total cost from producing 2 pizzas to 3 pizzas. From Exhibit 6-12, we can see that the total cost of producing 2 pizzas is $20 and the total cost of producing 3 pizzas is $30. Therefore, the marginal cost of the third pizza is $30 - $20 = $10.

Exhibit 6-12 Cost Schedule for Producing Pizza