The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in the area is $10. Total costs include all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table. Total Hourly Output and Sales of Pizzas Total Hourly Cost (S) Total Economic Profit (S) Total Revenue (S) Marginal Cost (S) Marginal Revenue (S) 1 10 1 2 11 20 3 12 30 18 14 40 26 18 50 32 24 60 36 32 70 38 8 42 80 38 54 90 36 10 70 100 30

The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in the area is $10. Total costs include all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table. Total Hourly Output and Sales of Pizzas Total Hourly Cost (S) Total Economic Profit (S) Total Revenue (S) Marginal Cost (S) Marginal Revenue (S) 1 10 1 2 11 20 3 12 30 18 14 40 26 18 50 32 24 60 36 32 70 38 8 42 80 38 54 90 36 10 70 100 30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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