2. Sals Pizza Shop has a unique recipe for pizza, and currently its optimal price is $20...
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2. Sal’s Pizza Shop has a unique recipe for pizza, and currently its optimal price is $20 per pizza at a quantity of 200 pizzas per week. Its marginal cost is $12 per pizza when it produces fewer than 180 pizzas per week. The marginal cost is $15 per pizza when it produces 180 to 210 pizzas per week. The marginal cost is $18 per pizza when it produces between 211 and 300 pizzas per week. The staff cannot produce more than 300 pizzas per week. Assuming that fixed costs are $300 per week, its marginal revenue from the 200th pizza sold this week is
a. $20.
b. $12.
c. $15.
d. $17.57.
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Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 9780324359817
1st Edition
Authors: Luke M. Froeb, Brian T. McCann
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