The table at right represents the hourly output and cost structure for a local p

Question

The table at right 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 the area is $10. Total costs include all implicit opportunity costs.

Calculate the total revenue and total economic profit for this pizza shop at each rate of output and fill in the blanks in the table.

Total Hourly Output sales of pizzas Total hourly cost Total Revenue Total economic profit

0 2

1 6

2 8

3 9

4 11

5 15

6 21

7 29

8 39

9 51

10 67

Explanation / Answer

Total cost=     

(Hourly            cost*output)

3562

Total output of hourly sales of pizza Total hourly cost Total revenue

Total cost=     

(Hourly            cost*output)

Economic Profit =(Revenue-Cost) 0 2 0 0 1 6 100 6 94 2 8 200 16 184 3 9 300 27 273 4 11 400 44 356 5 15 500 75 425 6 21 600 126 474 7 29 700 203 497 8 39 800 312 488 9 51 900 459 441 10 67 1000 670 330 TOTAL

3562

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