Use the Following to Answer Questions

question 102

Multiple Choice

Use the following to answer questions:
-(Table: TC's Pizza Parlor) Look at the table TC's Pizza Parlor. Assume that the marginal benefit is constant in intervals of production. Suppose five slices of pizza are being produced. What is the marginal benefit of producing one more slice of pizza?

• A) $3
• B) $2
• C) $15
• D) $55

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Definitions:

Total Costs

The combined amount of all the costs associated with the production of goods or services, including both fixed and variable costs.

Output

The quantity of products or services produced by a company, a sector, or an economy within a specified period.

Profit

The profit made when the income from a business operation surpasses the expenditures, costs, and taxes required to maintain that operation.

Zero Marginal Cost

Zero marginal cost describes a situation where producing one additional unit of a good or service does not increase the total cost of production.