Use the following to answer questions : $$\begin{array}{l}
\text { Table: TC's Pizza Parlor }\
\begin{array} { c c c }
\hline \begin{array} { l }
\text { Slices } \
\text { of Pizza }
\end{array} & \text { Total Costs } & \text { Total Benefits } \
\hline 0 & \$ 10 & \$ 0 \
5 & 20 & 40 \
10 & 30 & 55 \
15 & 40 & 65 \
20 & 50 & 70 \
\hline
\end{array}
\end{array}$$
-(Table: TC's Pizza Parlour)Use Table: TC's Pizza Parlour.Assume that the marginal benefit is constant in intervals of production.Suppose that five slices of pizza are being produced.What is the marginal benefit of producing one more slice of pizza?

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: TC's Pizza Parlor }\
\begin{array} { c c c } 
\hline \begin{array} { l } 
\text { Slices } \
\text { of Pizza }
\end{array} & \text { Total Costs } & \text { Total Benefits } \
\hline 0 & \$ 10 & \$ 0 \
5 & 20 & 40 \
10 & 30 & 55 \
15 & 40 & 65 \
20 & 50 & 70 \
\hline
\end{array}
\end{array}$$
-(Table: TC's Pizza Parlour)Use Table: TC's Pizza Parlour.Assume that the marginal benefit is constant in intervals of production.Suppose that five slices of pizza are being produced.What is the marginal benefit of producing one more slice of pizza?

Quizplus · Accepted Answer

The marginal benefit of producing one more slice of pizza is the change in total benefit divided by the change in quantity produced. In this case, the change in total benefit is $15 (from $40 to $55) and the change in quantity produced is 5 slices (from 5 to 10 slices). Therefore, the marginal benefit of producing one more slice of pizza is $15 / 5 = $3.

Use the Following to Answer Questions -(Table: TC's Pizza Parlour)Use Table: TC's Pizza Parlour