Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of

The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in this area is $10. Total cost includes all implicit opportunity cost. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table.

Total Hourly Output and Sales of Pizzas

Total Hourly Cost ($)

Total Revenue ($)

Total Economic Profit ($)

Marginal Cost ($)

Marginal Revenue ($)

0

6

0

0

-

-

1

10

10

0

2

12

20

8

3

13

30

17

4

15

40

25

5

19

50

31

6

25

60

35

7

33

70

37

8

43

80

37

9

55

90

35

10

71

100

29


How I calculate this?

Step by Step Solution

3.40 Rating (166 Votes )

There are 3 Steps involved in it

Step: 1

Marginal means additional The marginal cost of producing second output is the to... 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

Microeconomics

Authors: Michael Parkin

11th edition

133019942, 978-0133020250, 133020258, 978-0133019940

More Books

Students also viewed these Economics questions