. The table represents the hourly output and coststructure for a local pizzeria. The market is per-fectly competitive, and the market price of a pizzain the area is $10. Total costs include all opportu-nity costs. Fixed costs equal zero.Total Hourly Outputand Sales of PizzasTotal HourlyVariable Cost ($)19.2111214518624732842541068a. Calculate the total revenue and total economicprofit for this pizzeria at each rate of output.b. Assuming that the pizzeria always produces andsells at least one pizza per hour, does this appearto be a situation of short-run or long-runequilibrium?c. Calculate the pizzeria's marginal cost and mar-ginal revenue at each rate of output. Based onmarginal analysis, what is the profit-maximizingrate of output for the pizzeria?

Total hourly Sales of Pizza or Output Variable Cost Fixed Cost Price Total Revenue Total Cost =…

Answered: a. Calculate th profit for th. b.…

Business

Economics

a. Calculate th profit for th. b. Assuming th sells at least

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 6PA

See similar textbooks

Related questions

Q: caps at the local minor league stadium. Use the following graph to the questions. Price and cost per…

A: A monopoly is the sole producer of a good thus having maximum market power hence acts as a price…

Q: 4. The profit function of Firm GG is n=-2q2+280q. What is the profit maximizing quantity?What is the…

A: Given: Profit function, p=-2q2+280q

Q: Direction: Use the given data to answer the requirements below. Qty. Price TC TR Profit MR 0 40 30 2…

A: Qty Price TC TR Profit MR MC 0 40 30 2 35 50 4 30 100 6 25 160…

Q: d used to run a newsstand, but he's out of the business now. Todd started by selling local wspapers…

A: 18. According to the paragraph above, When Todd started his business, most of his costs were fixed.…

Q: costs per year (i.e., per printing) = $51,000 and the variable cost per unit = $35. What is th It…

A: The Profit Function: In business, the profit function is a function using for to predict or compute…

Q: a. Calculate the accounting profit for Gomez's pottery firm. b. Now calculate Gomez's economic…

A: Profit is the income earned after the deduction of the sum of expenses and the sum of revenues of…

Q: MC ATC 10 MR 5 10 15 20 Quantity (units) Fig 1 Price (dolalrs per unit)

A: Marginal cost is the amount of dollars incurred by an organization on making an increment unit of…

Q: ) A two Product firm faces the fellow demand and cost functions- 40-2P1-P2 82=35-P-Pz C= 8it2¢十16 a)…

A: We have :- Q1=40-2P1-P2 Or P2=40-2P1- Q1………………………………(I) Q2=35-P1-P2 Or P2=35-P1- Q2…………………..(II)…

Q: High total revenue does not necessarily mean maximum profit. Explain this stateme

A: Below are the formula for the TR and profit: TR = Price x Quantity Profit = TR - Total Cost

Q: OSee Hint The total cost of Mr. Plow, a snow-removal business, is given in the table below. Quantity…

A: The profit can be calculated by deducting total cost from total revenue as follows:

Q: apn shows the fong-run tuation Jucer of running shoes Price and cost (dollars per par) In the market…

A: The practise of mark up is adopted by the producer who has market power. In case of Monopoly and…

Q: TC MC AFC AVC TR MR AR PROFIT Recom 1 15

A: Profits are the excess of revenue receipts earned over the costs incurred in the production of goods…

Q: 2, Basıd on the following informātion , state whathez the profit maximyang on loss minimjang…

A: profit maximization is the short run or long run process by which a firm may determine the price,…

Q: Suppose that the manager of a donut shop tellsyou that he sold 220 donuts today, for a total revenue…

A: Average revenue is calculated by dividing the total revenue earned by the firm by the quantity of…

Q: 3. The figure below shows short run cost and revenue curves firm. Price and cost per unit MC £5 ATC…

A: 3) The curve shows the demand and MR curves along with the cost curves.

Q: Hannan's pizza shop currently produces 100 pizzas per day and sells them for a profit. She is…

A: Option a can be eliminated because the reason doesn't account for future profitability. It doesn't…

Q: The firm has total revenue $100 and producing total 10 cell phone. How would I calculate average…

A: Total revenue (TR) = $100 Total quantity (Q) = 10 units Average revenue (AR) = ?

Q: profi

A: Profit maximization is the process which maybe used in short or long run which helps a firm in…

Q: Price/Cost per egg MC 12 ATC 8 MR3 AVC 6. MR2 MR1 Quantity 100 200 300 400 he market price per egg…

A: A perfectly competitive firm is a price taker in nature, i.e., it takes the price determined by the…

Q: (a) The production department of a fim reported the following information for the month of January…

A: Answer

Q: 3 P-200x -3x² - 2xy + 150y-2y Find Px Pxx, Py, Pyy Pxy - Pyx Set Px = Py to Fino x Ano y Pxx Pxy…

A: Introduction Here we have given a quadratic equation of profit. P = 200x - 3 x2 - 2xy + 150 y - 2 y2…

Q: 18. New firms will exit aheriesty.competinve mzrket when: 1 average variable costs are less han…

A: Firms will exit the market or shut down production if it is not able to cover even its variable…

Q: (a) What price yields a maximum profit? | per unit (b) When the profit is maximized, what is the…

A: ‘Total cost’: ‘Total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: a. What is the profit-maximizing level of output?

A: The main objective of every firm is to maximize their profits. Profits are calculated by taking the…

Q: Suppose a resturant in a city making above normal profit in the short run. How will the market…

A: A restaurant is operating in a monopolistic competitive market structure.

Q: onald's profit-maximising quantity is 20 cronuts, what is the market price per cronut at that…

A: In financial hypothesis, perfect competition happens when all organizations sell indistinguishable…

Q: Will a profit-maximizing firm always minimi ze costs?

A: The main objective of any firm is profit-maximization. The profit of the firm is calculated by…

Q: a farmer in Georgia begins to grow peaches. He uses $1.000.000 in savings to purchase land. he rents…

A: Both Economic profit and Accounting ptofit solved below,

Q: s the assistant manager of a restaurant, how many t formation for Saturday night's dinner menu:…

A: Given Demand = 91dinners per hour Server target utilization = 90% Service rate = 15 dinners/hour

Q: One more question is, A profit maximizing firm faces market price of p2. What are their profits?

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Asşuming this firm maximizes profit, it will: a. Produce 0A at a price of P Produce OD at.a.price of…

A: The perfectly competitive firm is a price taker and can sell any quantity of commodity at the market…

Q: A. Define marginal revenue and marginal cost.

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Consider the total cost and total revenue of Farm Fresh Diary Output Quantity (Milk in Liters) Total…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: usiness profit is generally greater than economic profit. a. True b. False

A: According to the given question Economic profits are also known as the accounting profit which…

Q: The profit-maximizing principle is In the case that the profit-maximizing point is in between two…

A: At equilibrium the price is determined when marginal revenue curve is equal to the marginal cost…

Q: Price Mayert cost Marginl Cost 75 Averaye Totuw Cost 70 Averaye Uarindle cost 52 40 35 Demand 100…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: 3 The figure below shows the cost curves for a profit-maxmizing firm in a periecny competitive…

A: Variable cost are the costs that proportionally change with the changes in the activity base such as…

Q: (a) Calculate the value of marginal profit when marginal revenue is $400 and marginal cost is $700…

A: # we know that the difference between the marginal revenue and the marginal cost always gives the…

Q: (A) The Marginal cost of a firm is $230 and the marginal revenue is $255 What would be the value of…

A: The data given in question:- Marginal cost of firm = $230 Marginal revenue of firm = $255 Marginal…

Q: No.4) The Profit of Firm GG is uu= -2q² + 280q .What is the profit maximizing quantity? What is the…

A: We have the profit function, π = -2q2+ 280q In order to find the profit-maximizing level quantity,…

Q: ESTION 2 re 2 shows on the long run cost and revenue cuoce. Figure 2 RM MC AC 14 10 D = AR EMR 10 11…

A: Until the average cost decreases, the marginal cost is lower than the average. When the average…

Q: 4. A firm's cost curves are given in the following table. TC TFC TVC AVC ATC MC Revenue Profit RO100…

A: The firms have a consideration regarding allowing sequential estimations about the profit and the…

Q: Select one: O a. Positive economic profit O b. Economic loss c. We can not tell from the figure. d.…

A: The figure represents market under perfect competition. Perfect Competition: It refers to a market…

Q: What is the profit maximizing level of output and how much daily profit will the producer below earn…

A: Profit is calculated as the difference between total revenue and total costs. In economics, total…

Q: d. At what volumes do breakeven occur? e. What is the company's range of profitable demand?

A: Please find the answer below.

Q: Its cost is C = 100 – 5Q + Q² and Demand - is P = 55 – 2Q a. What is profit max price and quantity.…

A: A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and…

Q: A. The table below shows the cost schedule of XYZ Company, producing face shields sold at P22 per…

A: We have given the cost schedule of XYZ company. The market price of face shields is 22.

Q: V See Hint Suppose that Juan sells burritos. The total cost of production, based on the number of…

A: The profit-maximizing output in the market is obtained at the point where the marginal cost of…

Q: Price MC 160 140 ATC 123.33 Demand 90 56.67 MR 100 133.33 154.92 Quantity Refer to Figure 16-10. The…

A: In a monopolistic competitive firm there are large number of firms selling similar but not identical…

Question

. The table represents the hourly output and cost
structure for a local pizzeria. The market is per-
fectly competitive, and the market price of a pizza
in the area is $10. Total costs include all opportu-
nity costs. Fixed costs equal zero.
Total Hourly Output
and Sales of Pizzas
Total Hourly
Variable Cost ($)
1
9.
2
11
12
14
5
18
6
24
7
32
8
42
54
10
68
a. Calculate the total revenue and total economic
profit for this pizzeria at each rate of output.
b. Assuming that the pizzeria always produces and
sells at least one pizza per hour, does this appear
to be a situation of short-run or long-run
equilibrium?
c. Calculate the pizzeria's marginal cost and mar-
ginal revenue at each rate of output. Based on
marginal analysis, what is the profit-maximizing
rate of output for the pizzeria?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
How does fixed cost affect marginal cost? Why is this relationship important?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
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?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
The WipeOut Ski Company manufactures skis for beginners. Fixed costs are 30. Fill in Table 7.16 for total cost, average variable test, average total cost, and marginal cost.
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
Are there fixed costs in the lung-run? Explain briefly.
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?