Exhibit 7-11 Short-Run Cost Curves Schedule for Pizzeria's Hourly Production

Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Total } \\\text { Product }\end{array} & \begin{array} { c } \text { Total } \\\text { Variable Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} \\\hline 0 \text { pizzas } & \$ 0 & \$ 20 \\10 & 50 & 70 \\20 & 80 & 100 \\30 & 130 & 150 \\40 & 230 & 250 \\\hline\end{array}$$
-In Exhibit 7-11, what is the marginal cost of increasing production from 10 to 20 pizzas per hour?

A) $2 per pizza.
B) $3 per pizza.
C) $4 per pizza.
D) $5 per pizza.

Correct Answer:

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