Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

30. Pat's Pizza Kitchen is a price taker in a perfectly competitive market. It cost's are as follows: Output (Pizza per hour) Total cost (dollar

image text in transcribedimage text in transcribed
30. Pat's Pizza Kitchen is a price taker in a perfectly competitive market. It cost's are as follows: Output (Pizza per hour) Total cost (dollar per hour) 0 10 1 21 2 30 LU 41 4 54 S 69 a. Using the total cost curve chart, calculate average cost and marginal cost. Draw the average and marginal cost curves? (Application: 4 Marks) b. What is Pat's profit-maximizing output and how much economic profit does Pat make if the market price is:1. Price= $ 14 (2 Marks) 2. Price= $ 12 (2 Marks) 3. Price=$ 10 (2 Marks) C. At what price Pat's kitchen break even? (Application: 2 Marks) d. What are some of the features that make firms in Perfectly competitive industry have? (Communication: 3 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Economics questions

Question

Find the Jacobian of the transformation. x = pe q , y = qe p

Answered: 1 week ago