Consider two pizza places in NYC, Bella Napoli and SuperPizza. The current pandemic and the City's policy response halved the local demand for pizza and raised cost of production. Currently, the daily total cost at Bella Napoli is TC =q² + 12q + 100 and the recurring FC is entirely sunk in the short run. At SuperPizza, the daily total cost is TC = q? + 4q + 100 and $64 of the recurring FC is sunk in the short run. On weekends, the price of pizza is $20 per pie. On weekdays, it's $15. Should Bella Napoli and/or SuperPizza stay open on weekdays or shuold they stay open on weekends only?

Consider two pizza places in NYC, Bella Napoli and SuperPizza. The current pandemic and the City's policy response halved the local demand for pizza and raised cost of production. Currently, the daily total cost at Bella Napoli is TC =q² + 12q + 100 and the recurring FC is entirely sunk in the short run. At SuperPizza, the daily total cost is TC = q? + 4q + 100 and $64 of the recurring FC is sunk in the short run. On weekends, the price of pizza is $20 per pie. On weekdays, it's $15. Should Bella Napoli and/or SuperPizza stay open on weekdays or shuold they stay open on weekends only?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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