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1. Consider the following cost information for a pizzeria: Total Cost Variable Cost Quantity 0 dozen pizzas $300 $0 1 dozen pizzas $350 $50
1. Consider the following cost information for a pizzeria: Total Cost Variable Cost Quantity 0 dozen pizzas $300 $0 1 dozen pizzas $350 $50 2 dozen pizzas $390 $90 3 dozen pizzas $420 $120 4 dozen pizzas $450 $150 5 dozen pizzas $490 $190 6 dozen pizzas $540 $240 a. What is the pizzeria's fixed cost? b. Construct a table in which you calculate the marginal cost per dozen pizzas using the information on total cost. Also, calculate the marginal cost per dozen pizzas using the information on vari- able cost. What is the relationship between these sets of numbers? Explain. c. Calculate the average total cost for each quantity. Draw a diagram containing the pizzeria's marginal and average total cost curves.
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