QUESTION 2 Steve has a pizzeria and assume that the market for pizzeria is a perfectly competitive market. (Assume that Steve has a lease on a kitchen which is a fixed cost. The cost of workers are a variable cost.) Quantity Quantity Quantity Cost of Cost of Total ATC AFC AVC MC of of of Kitchen Workers Costs Workers Ovens Pizzas 0 1 0 1000 0 1500 1 1 50 1000 500 1500 30.00 20.00 10.00 10.00 2 1 125 1000 1000 2000 16.00 8.00 8.00 6.67 13 1 190 1000 500 2500 13.16 1.26 7.89 7.69 4 1 250 1000 2000 3000 12.00 4.00 8.00 8.33 15 1 290 1000 2500 3500 12.07 3.45 8.62 12.50 320 1000 3000 4000 12.50 3.13 9.38 16.67 340 1000 3500 4500 13.24 2.94 10.29 25.00 In the long-run: If the price of pizza is $11 per pizza, what is the profit maximizing level of output? 50 125 190 O 250 290 320 340