It costs $1,000 to produce one pill and $1,002 to produce two pills. The incremental cost of a pill is $501. True or False?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter21: Getting Employees To Work In The Firm’s Best Interests
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It costs $1,000 to produce one pill and $1,002 to produce two pills. The incremental cost of a pill is $501.

 

True or False?

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