Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then complete the final column by calculating the marginal cost per dozen pizzas using the information on variable cost. Quantity Total Cost Marginal Cost Variable Cost Marginal Cost Using Total Cost Using Variable Cost (Dozens of pizzas) (Dollars) (Dollars) (Dollars) (Dollars) 280 1 320 40 2 350 70 380 100 4 420 140 470 190 530 250 True or False: It doesn't matter whether you compute marginal cost using total cost or variable cost. O True O False
Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then complete the final column by calculating the marginal cost per dozen pizzas using the information on variable cost. Quantity Total Cost Marginal Cost Variable Cost Marginal Cost Using Total Cost Using Variable Cost (Dozens of pizzas) (Dollars) (Dollars) (Dollars) (Dollars) 280 1 320 40 2 350 70 380 100 4 420 140 470 190 530 250 True or False: It doesn't matter whether you compute marginal cost using total cost or variable cost. O True O False
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 3SCQ: The WipeOut Ski Company manufactures skis for beginners. Fixed costs are 30. Fill in Table 7.16 for...
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Transcribed Image Text:Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then complete
the final column by calculating the marginal cost per dozen pizzas using the information on variable cost.
Quantity
Total Cost
Marginal Cost
Variable Cost
Marginal Cost
Using Total Cost
(Dollars)
Using Variable Cost
(Dozens of pizzas) (Dollars)
(Dollars)
(Dollars)
280
320
40
2
350
70
3
380
100
4
420
140
5
470
190
6
530
250
True or False: It doesn't matter whether you compute marginal cost using total cost or variable cost.
O True
O False
AMAAAA
Transcribed Image Text:6. Firm's Costs 2
Consider the following cost information for a pizzeria:
Quantity
Total Cost
Variable Cost
(Dozens of pizzas)
(Dollars)
(Dollars)
280
1
320
40
350
70
3
380
100
4
420
140
5
470
190
530
250
The pizzeria's fixed cost is $
Expert Solution
Formulas used:
Marginal Cost using Total Cost= Change in Total Cost/Change in Quantity
Marginal Cost using Variable Cost= Change in Variable Cost/Change in Quantity
Total Fixed Cost = Total Cost - Total Variable Cost
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