Total Output 0 cases of books 1 2 3 4 Total Variable Cost $0 100 150 250 450 Total Cost $200 300 350 450 650 In Exhibit 6-10, the marginal cost of increasing production from 2 to 3 cases of books is: O a. lower than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost must average total cost between 2 and 3 cases.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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5
Exhibit 6-10 Short-run cost schedule for book publisher's hourly production
Total
Total
Output
Variable Cost
0 cases of books
2
3
4
$0
100
150
250
450
Total
Cost
$200
300
350
450
650
In Exhibit 6-10, the marginal cost of increasing production from 2 to 3 cases of books is:
O a. lower than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost must be greater than
average total cost between 2 and 3 cases.
O b. lower than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in
between 2 and 3 cases.
Oc higher than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in
between 2 and 3 cases.
O d. higher than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost curve must be rising in
between 2 and 3 cases.
Transcribed Image Text:Exhibit 6-10 Short-run cost schedule for book publisher's hourly production Total Total Output Variable Cost 0 cases of books 2 3 4 $0 100 150 250 450 Total Cost $200 300 350 450 650 In Exhibit 6-10, the marginal cost of increasing production from 2 to 3 cases of books is: O a. lower than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost must be greater than average total cost between 2 and 3 cases. O b. lower than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in between 2 and 3 cases. Oc higher than the marginal cost of increasing production from 1 to 2 cases of books, so the average total cost must be rising in between 2 and 3 cases. O d. higher than the marginal cost of increasing production from 1 to 2 cases of books, so the marginal cost curve must be rising in between 2 and 3 cases.
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