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Welcom to Uno's $5 Pizzas! Complete the table and make a graph of Price, MC, ATC (dollars on vertical y axis; Qty of cooks on
Welcom to Uno's $5 Pizzas! Complete the table and make a graph of Price, MC, ATC (dollars on vertical y axis; Qty of cooks on horizontal x axis). Assume pizzas in this economy are generic, with Perfect Competition (price-taker). We will look at "what-ifs" for how many pizzas we can make per hour. With squeezing more and more pizzas into the oven, costs and revenue will be affected. Let's find the sweet spot. Fixed cost for rent is $3 (sounds low but it's just for an hour). Variable Cost (VC) will consider supplies, labor, and also broken plates and ruined pizza that can occur from too many cooks in the kitchen. VC (total): 1 pizza=$7, 2 pizzas=$12, 3 pizzas=$16, 4 pizzas=$19.5, 5 pizzas=$23, 6 pizzas=$27, 7 pizzas=$32, 8 pizzas=$39. Pizzas FC VC TC MC TR Price MR 0 $3 0 3 - 0 - 1 3 7 10 7 5 2 3 12 3 3 16 5 4 3 19.5 5 3 23 5 6 3 27 7 3 32 8 3 39 42 7 5 MCgraphSm_5ffa6561a5fcb.jpg Now plot 3 curves (Price, MC, ATC) on graph paper (download it from attachment) and match the correct values to the questions. Column
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