Calculate Pats profit-maximizing output and economic profit if the market price is Pats Pizza Kitchen is a
Question:
Pat€™s Pizza Kitchen is a price taker. Its costs are
(i) $14 a pizza.
(ii) $12 a pizza.
(iii) $10 a pizza.
Transcribed Image Text:
Output (pizzas per hour dollars per hour) Total cost 10 21 30 41 54 69
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i At 14 a pizza Pats profitmaximizing output is 4 pizzas an hour and economic profit is 2 an hour Pats maximizes its profit by producing the quantity ...View the full answer
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