The table below shows the hourly output and cost structure for a small-town pizza shop. Calculate Marginal Revenue and Marginal Cost to determine the pizza shop’s profit-maximizing rate of output. Assume that the price of a pizza in this town is $10. Hourly Output of Pizzas Total Hourly Cost ($) 0 5 1 9 2 11 3 12 4 14 5 18 6 24 7 32 8 42 9 54 10 68
The table below shows the hourly output and cost structure for a small-town pizza shop. Calculate Marginal Revenue and Marginal Cost to determine the pizza shop’s profit-maximizing rate of output. Assume that the
Hourly Output of Pizzas Total Hourly Cost ($)
0 5
1 9
2 11
3 12
4 14
5 18
6 24
7 32
8 42
9 54
10 68
Trending now
This is a popular solution!
Step by step
Solved in 2 steps