If Fernando can produce pizzas at a constant cost of $5 per pizza, how many pizzas does he produce, what price does he charge, and how much profit does he make?
If Fernando can produce pizzas at a constant cost of $5 per pizza, how many pizzas does he produce, what price does he charge, and how much profit does he make?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
can you answer this for me please.
Transcribed Image Text:a. If Fernando can produce pizzas at a constant cost of $5 per pizza, how many pizzas does he produce, what price does he charge, and how much profit does he make?
Transcribed Image Text:### Demand for Fernando's Pizzas
Fernando has a monopoly on pizza sales in North Key Largo, Florida. Below is a table showing the relationship between the price of Fernando's pizzas and the quantity demanded by consumers.
#### Table: Price and Quantity Demanded
| Price | Quantity Demanded |
|-------|-------------------|
| $30 | 0 |
| $25 | 1 |
| $20 | 2 |
| $15 | 3 |
| $10 | 4 |
| $5 | 5 |
| $0 | 6 |
#### Explanation:
- The table illustrates a typical downward-sloping demand curve. As the price of a pizza decreases, the quantity demanded increases.
- At the highest price point of $30, no pizzas are demanded. At a price of $0, the maximum quantity demanded is 6 pizzas.
- This data can be used to analyze consumer behavior, elasticity of demand, and pricing strategies in a monopolistic market.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education