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.)

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
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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.)
Clear all
Fina
Transcribed Image Text: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.) Clear all Fina
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