Pat's Pizza Kitchen is a price taker. It has the following hourly costs: a. If a pizza
Question:
Pat's Pizza Kitchen is a price taker. It has the following hourly costs:
a. If a pizza sells for $14, what is Pat's profit-maximizing output per hour? How much economic profit does Pat make?
b. What is Pat's shutdown point?
c. Derive Pat's supply curve.
d. Over what price range will Pat leave the pizza industry?
e. Over what price range will other firms with costs identical to Pat's enter the industry?
f. What is the price of a pizza in the long-run?
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