Consider the following cost information for a pizzeria:QuantityTotal Cost Variable Cost(Dozens of pizzas)(Dollars)(Dollars)300135050239090342012044501504901906540240The pizzeria's fixed cost is s Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then completethe final column by calculating the marginal cost per dozen pizzas using the information on variable cost.QuantityTotal Cost Marginal CostVariable Cost Marginal CostUsing Total CostUsing Variable Cost(Dozens of pizzas) (Dollars)(Dollars)(Dollars)(Dollars)300135050239090342012044501505490190540240True or False: It doesn't matter whether you compute marginal cost using total cost or variable cost.TrueFalse

The firms total costs are equal to the sum of its variable costs and fixed costs. Fixed costs are…

Answered: Consider the following cost information…

Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of pizzas) (Dollars) (Dollars) 300 1 350 50 2 390 90 420 120 4 450 150 490 190 540 240 5.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

Consider the following cost information for a pizzeria:
Quantity
Total Cost Variable Cost
(Dozens of pizzas)
(Dollars)
(Dollars)
300
1
350
50
2
390
90
3
420
120
4
450
150
490
190
6
540
240
The pizzeria's fixed cost is s

Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then complete
the final column by calculating the marginal cost per dozen pizzas using the information on variable cost.
Quantity
Total Cost Marginal Cost
Variable Cost Marginal Cost
Using Total Cost
Using Variable Cost
(Dozens of pizzas) (Dollars)
(Dollars)
(Dollars)
(Dollars)
300
1
350
50
2
390
90
3
420
120
4
450
150
5
490
190
540
240
True or False: It doesn't matter whether you compute marginal cost using total cost or variable cost.
True
False

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