9- Prod X Premier Membership u if a firm\'s use of labor c if a firm\'s use of l
ID: 1166557 • Letter: 9
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9- Prod X Premier Membership u if a firm's use of labor c if a firm's use of labor c tructure.com/courses/1138695/quizzes/1913851/take sor Question 8 0.83 pt Consider the pizzeria whose costs are described in Question 5 above. (Consider the following pizzeria. When the firm produces zero pizzas per hour its total variable cost (TVC) is $0 and its Total Cost (TC) is $20. When it produces 10 pizzas per hour its TVC is $50 and TC is $70. When it produces 20 pizzas per hour its TVC is $80 and its TC is $100. When it produces 30 pizzas per hour its TVC is $130 and its TC is $150. When it produces 40 pizzas per hour its TVC is $230 and its TC is $250. ) What is this restaurant's marginal cost of increasing production from 10 to 20 pizzas? $A per pizza $5 per pizza $2 per oizza $3 per pizza O Question 9 0.84 pisExplanation / Answer
Marginal cost is the additional cost of producing one more unit. It is the change in total cost divided by change in output.
When 10 pizzas are produced, the total cost is $70.
When 20 pizzas are produced, the total cost is $100.
Change in output is 10 (20-10), change in cost is $30 ($100-$70).
So the marginal cost per pizza, when production is increased from 10 to 20 pizzas is ($100-$70)/20-10=$30/10=$3 per pizza.
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