(Table: TC's Pizza Parlor) Use Table: TC's Pizza Parlor.Assume that marginal cost is constant in the intervals of production.The marginal cost for pizza production:

A) remains constant.
B) increases,then decreases.
C) increases.
D) decreases.

Question

Mahendra Kumar · Accepted Answer

Final Answer : A, Explanation :  Since the table shows a constant increase in the total cost as the production increases, and the total cost is the sum of fixed cost and variable cost. If the fixed cost is constant and the total cost increases with production level, then the variable cost must be increasing, which leads to a constant increase in marginal cost. Therefore, the answer is A.

(Table: TC's Pizza Parlor) Use Table: TC's Pizza Parlor.Assume that marginal cost is constant in the intervals of production.The marginal cost for pizza production:

A) remains constant.
B) increases,then decreases.
C) increases.
D) decreases.

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Learning Objectives

Related questions

(Table: TC's Pizza Parlor) Use Table: TC's Pizza Parlor.Assume that marginal cost is constant in the intervals of production.The marginal cost for pizza production:A) remains constant.B) increases,then decreases.C) increases.D) decreases.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: TC's Pizza Parlor) Use Table: TC's Pizza Parlor.Assume that marginal cost is constant in the intervals of production.The marginal cost for pizza production:

A) remains constant.
B) increases,then decreases.
C) increases.
D) decreases.