1. Consider the following cost information for a pizzeria: 9 Quantity Total cost Variable Cost 0 dozen pizzas $300 $0 1 350 so 8 2 390 90 3 420 120 4 450 150 9 5 490 190 6 540 240 a. How much is the pizzen'a's xed cost? + b. I) Calculate the marginal cost per dozen pizzas using the information on total cost. H) Also, calculate the marginal cost per dozen pizzas using the information on variable cost. What is the relationship between these sets of numbers? Comment. '1' Quantity Total cost Variable Cost MC (1) MC (II) 7 0 dozen $300 $0 1 350 so 0 2 390 90 3 420 120 4 450 150 8 5 490 190 6 540 240 9 2. You are thinking about setting up a lemonade stand. The stand itself costs $200. The ingredients for each cup of lemonade cost $0.50. a. How much is your xed cost of doing business? How much is your variable cost + per cup? b. Construct a table showing your total cost, average total cost, and marginal cost for output levels varying from 0 to 10 gallons. (Hint: There are 16 cups in a gallon) _D?ginma@mZAmr 3. Jane's Juice Bar has the following cost schedules: Quantig Variable cost Total cost 0 vats of juice $0 $30 1 1o 40 0 2 25 55 3 45 75 4 70 100 8 5 100 1 3 0 6 135 165 Q a. Calculate average variable cost, average total cost, and marginal cost for each quanti ' Put these numbers in the table below. Quantity Average variable cost Average total cost Marginal cost 0 + l 2 3 4 5 6 b. Graph all three curves (average variable cost, average total cost and marginal cost) using Excel or a piece of grid paper. Attach the graph to this assignment. What is the relationship between the marginal-cost curve and the average total cost curve? Between the marginal cost curve and the average variable cost curve? Explain Safari File Edit View History Bookmarks Window Help Q 8 Wed Apr 27 9:50 AM