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An incomplete cost schedule for producing pizzas Pizzas Fixed Cost ($) Variable Cost ($) Total Cost ($) 0 1 48 2 17 3 27 4
An incomplete cost schedule for producing pizzas
Pizzas | Fixed Cost ($) | Variable Cost ($) | Total Cost ($) |
0 | |||
1 | 48 | ||
2 | 17 | ||
3 | 27 | ||
4 | 78 | ||
5 | 40 | 90 |
(a) What is the total cost if 0 pizzas are produced?
(b) What is the average variable cost of 5 pizzas?
(c) What is the marginal cost of the third pizza?
(d) If marginal revenue was $10, what would be the profit maximising output?
(e) If marginal revenue was $7, what would be the profit maximising output?
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