Question
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...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Microeconomics
Authors: Michael Parkin
11th edition
133019942, 978-0133020250, 133020258, 978-0133019940
Students also viewed these Economics questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App