There's a few other posts here for you to ponder, but the real stuff - for this unit -
Consider the following costs for a pizzaria. They go in order of Q in dozens/TC/VC
0/$300/$0
1/$350/$50
2/$390/$90
3/$420/$120
4/$450/$150
5/$490/$190
6/$540/$240
a. What is the fixed cost? how do you know?
b. What is the marginal cost per dozen pizzas using TC? What is the marginal cost per dozen pizzas using VC? What is the relationship between the two?
2 comments:
a. fixed cost=$300, that is total cost when none are made.
wow, part a. was a lot easier than part b.
The TC marginal cost goes from 50-40-30-30-40-50
The VC marginal cost is 50-40-30-30-40-50.
They are the same. interesting.
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