Output Total cost pizzas per hour dollars 20 35 49 61 71 79

Output Total cost pizzas per hour) (dollars) 20 35 49 61 71 79 85 6 3) Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to (10 Points) 4) Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total variable cost of producing four pizzas per hour is (10 Points) 5) Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her marginal cost of producing the fifth pizza is (10 Points)

Solution

ANSWER:

3) Pulette total cost when producing 0 pizza is $20 , which means when no pizza is being produced she has a cost of $20 which will be her fixed cost irrespective of whether she produces pizza or not.

4) Total cost when producing 4 pizzas is 71. we know from part 3 that the fixed cost is $20 and we also know that total cost = total fixed cost + total variable cost

$71 = $20 + total variable cost

total variable cost = $71 - $20 = $51

so the total variable cost of producing 4 pizzas is $51.

5) total cost of producing 5th pizza is $79 and total cost of producing 4th pizza is $71.

marginal cost of producing 5th pizza is = tc of producing 5th pizza - tc of producing 4th pizza = $79 - $71 = $8