Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's uses Plant 2. What is the marginal cost of producing the 200th pizza? A. $7.00 B. $10.55 C. $4.40 D. $5.09
Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's uses Plant 2. What is the marginal cost of producing the 200th pizza? A. $7.00 B. $10.55 C. $4.40 D. $5.09
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 15P
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- Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the
opportunity cost of Silvio's entrepreneurship, $1,000 per week.
Suppose Silvio's uses Plant 2. What is the marginal cost of producing the 200th pizza?
A. $7.00
B. $10.55
C. $4.40
D. $5.09
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