The table below shows the hourly output and cost structure for a small-town pizza shop. Calculate Marginal Revenue and Marginal Cost to determine the pizza shop’s profit-maximizing rate of output. Assume that the price of a pizza in this town is $10. Hourly Output of Pizzas Total Hourly Cost ($) 0 5 1 9 2 11 3 12 4 14 5 18 6 24 7 32 8 42 9 54 10 68

The table below shows the hourly output and cost structure for a small-town pizza shop. Calculate Marginal Revenue and Marginal Cost to determine the pizza shop’s profit-maximizing rate of output. Assume that the price of a pizza in this town is $10. Hourly Output of Pizzas Total Hourly Cost ($) 0 5 1 9 2 11 3 12 4 14 5 18 6 24 7 32 8 42 9 54 10 68

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 9SQ

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