Question
20. Smiling Pizzeria, a popular fast casual dining outlet near Wittenberg University, is considering keeping the store open past the usual closing time of 6
20. Smiling Pizzeria, a popular fast casual dining outlet near Wittenberg University, is considering keeping the store open past the usual closing time of 6 pm until 8 pm. If the plan goes ahead, additional workers will need to be hired at a wage rate of $40 per evening session. The price of each extra pie sold is $10. Assume all pizza pies made are sold. How many workers should Smiling Pizza hire, if any? Each additional number of workers and their projected output are shown below. Hint: Complete the table
workers | Total Product | MPL | MR =P | MRP | MC |
0 | 0 | - | - | - | - |
1 | 12 | $ 10.00 | $ 40.00 | ||
2 | 22 | $ 10.00 | $ 40.00 | ||
3 | 30 | $ 10.00 | $ 40.00 | ||
4 | 36 | $ 10.00 | $ 40.00 | ||
5 | 40 | $ 10.00 | $ 40.00 | ||
6 | 42 | $ 10.00 | $ 40.00 |
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