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6. Problems and Applications Q6 Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of pizzas) (Dollars) (Dollars) 0 280

6. Problems and Applications Q6

Consider the following cost information for a pizzeria:

Quantity Total Cost Variable Cost
(Dozens of pizzas) (Dollars) (Dollars)
0 280 0
1 320 40
2 350 70
3 380 100
4 420 140
5 470 190
6 530 250

The pizzeria's fixed cost is

.

Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then complete the final column by calculating the marginal cost per dozen pizzas using the information on variable cost.

Quantity Total Cost Marginal Cost Variable Cost Marginal Cost
(Dozens of pizzas) (Dollars) Using Total Cost (Dollars) Using Variable Cost
(Dollars) (Dollars)
0 280 0
1 320 40
2 350 70
3 380 100
4 420 140
5 470 190
6 530 250

True or False: It doesn't matter whether you compute marginal cost using total cost or variable cost.

True

False

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