A pizza shop sells two types of pizzas: Chicago-style and NewYork-style. The owner makes $8.00 Profit on each Chicago-style pizza pie & $5.50 Profit on each New York-style pizzapie.The owner would love to sell an unlimited amount of pizza butunfortunately they are limited by two production constraints:Prep Time and Cook Time.Each Chicago-style pizza requires 4 minutes of Prep Time, eachNew York-style pizza requires 3 minutes of Prep time, andthere is only 600 minutes of Prep Time available. EachChicago-style pizza requires 5 minutes of Cook Time, eachNew York-style pizza requires 2.5 minutes of Cook Time, andthere is only 550 minutes of Cook Time available.Based on the profit contributions & constraints given in theinformation above, what is the pizza shop's expected profit ifit produces at the optimal amount?$800$1120$1560$1100O $1320

Profits are the excess revenue generated after paying off all the expenses which are incurred for…

Answered: Based on the profit contributions &…

Based on the profit contributions & constraints given in the information above, what is the pizza shop's expected profit if it produces at the optimal amount?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

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Question

A pizza shop sells two types of pizzas: Chicago-style and New
York-style. The owner makes $8.00 Profit on each Chicago-
style pizza pie & $5.50 Profit on each New York-style pizza
pie.
The owner would love to sell an unlimited amount of pizza but
unfortunately they are limited by two production constraints:
Prep Time and Cook Time.
Each Chicago-style pizza requires 4 minutes of Prep Time, each
New York-style pizza requires 3 minutes of Prep time, and
there is only 600 minutes of Prep Time available. Each
Chicago-style pizza requires 5 minutes of Cook Time, each
New York-style pizza requires 2.5 minutes of Cook Time, and
there is only 550 minutes of Cook Time available.
Based on the profit contributions & constraints given in the
information above, what is the pizza shop's expected profit if
it produces at the optimal amount?
$800
$1120
$1560
$1100
O $1320

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