Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $4.00 in ingredients per pizza, $0.10 in electricity per pizza, $2,000 in restaurant rent per month, and $250 in insurance per month. Assume the pizza parlor produces 3,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $ 27,300. (Enter your response as an integer.) What is the fixed cost of production (per month)? The fixed cost of production is $. (Enter your response as an integer.)
Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $4.00 in ingredients per pizza, $0.10 in electricity per pizza, $2,000 in restaurant rent per month, and $250 in insurance per month. Assume the pizza parlor produces 3,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $ 27,300. (Enter your response as an integer.) What is the fixed cost of production (per month)? The fixed cost of production is $. (Enter your response as an integer.)
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 17P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning