in Welcom to Uno's Pizzerial Complete the table and make a graph of Price, MC, ATC (dollars on vertical y axis: Qty of cooks on horizontal x axis). Assume pizzas in this economy are generic, with Perfect Competition (price-taker). We will look at "what-ifs" for how many pizzas we can make per hour. With squeezing more and more pizzas into the oven, costs and revenue will be affected. Let's find the sweet spot. Fixed cost for rent is $9. Variable Cost (VC) will consider supplies, labor, and also broken plates and ruined pizza that can occur from too many cooks in the kitchen. VC (total): 1 pizza-$7, 2 pizzas-$13, 3 pizzas=$17, 4 pizzas $20, 5 pizzas-$23, 6 pizzas-$26.5, 7 pizzas- $32. 8 pizzas-$39. With Monopoly. Price has to decrease to get more sales. No more Mr. Darp! MR is different since Price is different with each batch Qty. Prices äre on the table. Note that Pand MR will be downward sloping. Pizzas FC vc TC ATC MC Price TR MR $9 0 9 9 7 16 16 8.5 8.5 8.5 13 22 11 8. 7.5 3 17 7.5 20 7. 23 6.5 26.5 32 5.5 39 1.5

in Welcom to Uno's Pizzerial Complete the table and make a graph of Price, MC, ATC (dollars on vertical y axis: Qty of cooks on horizontal x axis). Assume pizzas in this economy are generic, with Perfect Competition (price-taker). We will look at "what-ifs" for how many pizzas we can make per hour. With squeezing more and more pizzas into the oven, costs and revenue will be affected. Let's find the sweet spot. Fixed cost for rent is $9. Variable Cost (VC) will consider supplies, labor, and also broken plates and ruined pizza that can occur from too many cooks in the kitchen. VC (total): 1 pizza-$7, 2 pizzas-$13, 3 pizzas=$17, 4 pizzas $20, 5 pizzas-$23, 6 pizzas-$26.5, 7 pizzas- $32. 8 pizzas-$39. With Monopoly. Price has to decrease to get more sales. No more Mr. Darp! MR is different since Price is different with each batch Qty. Prices äre on the table. Note that Pand MR will be downward sloping. Pizzas FC vc TC ATC MC Price TR MR $9 0 9 9 7 16 16 8.5 8.5 8.5 13 22 11 8. 7.5 3 17 7.5 20 7. 23 6.5 26.5 32 5.5 39 1.5

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 31P: Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as...

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