Question

he table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitve, and the market price of a pizza in this area is $12. Total cost include all implicit opportunity cost. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table.

Total Hourly Output and Sales of Pizzas	Total Hourly Cost ($)	Total Revenue ($)	Total Economic Profit ($)	Marginal Cost ($)	Marginal Revenue ($)
0	4	0	0	-	-
1	8	12	4
2	10	24	14
3	11	36	25
4	13	48	35
5	17	60	43
6	23	72	49
7	31	84	53
8	41	96	55
9	53	108	55
10	69	120	51

Answer 1