Pat's Pizza Kitchen has the following total cost schedule. Price (dollars per pizza) 16- Output (pizzas per hour) Total cost (dollars per hour) 14- 10 21 2 30 12- 3 41 54 10- 5 69 8- Use the data to draw Pat's supply curve. Pat's is a price taker. Draw a point to show the quantity of pizza supplied when the market price equals minimum average variable cost and Pat's continues to produce pizza. Draw a point to show the quantity of pizza supplied when the market price is $14 a pizza. Draw Pat's supply curve: Label the part at which Pat supplies zero pizza So and label the part at which Pat's supplies some pizza S,. 6- 4- 2- 0- Output (pizzas per hour)
Pat's Pizza Kitchen has the following total cost schedule. Price (dollars per pizza) 16- Output (pizzas per hour) Total cost (dollars per hour) 14- 10 21 2 30 12- 3 41 54 10- 5 69 8- Use the data to draw Pat's supply curve. Pat's is a price taker. Draw a point to show the quantity of pizza supplied when the market price equals minimum average variable cost and Pat's continues to produce pizza. Draw a point to show the quantity of pizza supplied when the market price is $14 a pizza. Draw Pat's supply curve: Label the part at which Pat supplies zero pizza So and label the part at which Pat's supplies some pizza S,. 6- 4- 2- 0- Output (pizzas per hour)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Pat's Pizza Kitchen has the following total cost schedule.
Price (dollars per pizza)
16-
Output
(pizzas per hour)
Total cost
(dollars per hour)
14-
10
21
2
30
12-
3
41
54
10-
5
69
8-
Use the data to draw Pat's supply curve. Pat's is a price taker.
Draw a point to show the quantity of pizza supplied when the market price equals minimum average
variable cost and Pat's continues to produce pizza.
Draw a point to show the quantity of pizza supplied when the market price is $14 a pizza.
Draw Pat's supply curve: Label the part at which Pat supplies zero pizza So and label the part at
which Pat's supplies some pizza S,.
6-
4-
2-
0-
Output (pizzas per hour)
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