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Consider the following cost information for a pizzeria

01/05/2021 Client: muhammad11 Deadline: 2 Day

Consider the following cost information for a pizzeria:

Quantity

Total Cost

Variable Cost

(Dozens of pizzas)

(Dollars)

(Dollars)

0

320

0

1

380

60

2

430

110

3

460

140

4

500

180

5

550

230

6

620

300

The pizzeria’s fixed cost is.

Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then complete the final column by calculating the marginal cost per dozen pizzas using the information on variable cost.

Quantity

Total Cost

Marginal Cost

Variable Cost

Marginal Cost

(Dozens of pizzas)

(Dollars)

Using Total Cost

(Dollars)

Using Variable Cost

(Dollars)

(Dollars)

0

320

0

1

380

60

2

430

110

3

460

140

4

500

180

5

550

230

6

620

300

True or False: It doesn’t matter whether you compute marginal cost using total cost or variable cost.

True

False

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