Answered: Imagine yourself running a pizza…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

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I DO NOT NEED THE TABLE INSTEAD I NEED THE ANSWERS TO THE QUESTIONS BELOW

Quantity of Output	Total Variable Cost	Total Cost	Marginal Cost	Average Fixed Cost	Average Variable Cost	Average Total Cost
1	$20
2	$35
3	$45
4	$60
5	$80
6	$105
7	$140
8	$185
9	$250
10	$340

Imagine yourself running a pizza restaurant over a short term horizon. Think about the following potential changes in your costs. For each, try to discern which would affect your fixed costs from those that are variable costs. Specifically, how would each scenario shift your Average Variable Cost, Marginal Cost, and Average Total Cost curves? Explain your answers.

The wages of hourly workers increase
The cost of cheese increases
The rent on the building housing your restaurant increases
The price of gasoline (for pizza delivery) decreases

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