7. Ahmed's Pizza House sells extra-large deluxe pizzas at OMR 9.000 per pizza. The cost of ingredients to make extra-large deluxe pizza is OMR 2.000. Ahmed pays each of his employees OMR 60 per day, He also incurs a fixed cost of OMR 120 per day. Calculate Ahmed's total cost per day when he produces 50 extra-large deluxe pizzas using two workers. TC AFC +NC Te TC 33025 a OMR 100 b. OMR 124 C. OMR 220 d. OMR 340 :120+GA 8. Ahmed's Pizza House sells extra-large deluxe pizzas at OMR 9.000 per pizza. The cost of ingredients to make extra-large deluxe pizza is OMR 2.000. Ahmed pays each of his employees OMR 60 per day. He also incurs a fixed cost of OMR 120 per day. Caleulate Ahmed's variable.cost per day when he produces 50 extra-large deluxe pizzas using two NC = AVC xQ workers. a OMR 100 b. OMR 124 v50 2. OMR 220 d. OMR 240

7. Ahmed's Pizza House sells extra-large deluxe pizzas at OMR 9.000 per pizza. The cost of ingredients to make extra-large deluxe pizza is OMR 2.000. Ahmed pays each of his employees OMR 60 per day, He also incurs a fixed cost of OMR 120 per day. Calculate Ahmed's total cost per day when he produces 50 extra-large deluxe pizzas using two workers. TC AFC +NC Te TC 33025 a OMR 100 b. OMR 124 C. OMR 220 d. OMR 340 :120+GA 8. Ahmed's Pizza House sells extra-large deluxe pizzas at OMR 9.000 per pizza. The cost of ingredients to make extra-large deluxe pizza is OMR 2.000. Ahmed pays each of his employees OMR 60 per day. He also incurs a fixed cost of OMR 120 per day. Caleulate Ahmed's variable.cost per day when he produces 50 extra-large deluxe pizzas using two NC = AVC xQ workers. a OMR 100 b. OMR 124 v50 2. OMR 220 d. OMR 240

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...

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A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the money, it would have of pay 8 interest on the loan, but it currently has the cash, so it will But need to borrow. Should the firm make line investment? Show your work.
How does fixed cost affect marginal cost? Why is this relationship important?
What is die difference between accounting and economic profit?
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Are fixed costs also sunk costs? Explain.
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?