Requirement $2.$ From a cost standpoint, why do companies such as Long Island Restaurant want to operate near or at full capacity?

Companies want to run at full capacity to better utilize the resources they spend on average costs. The more units they produce, the lower the average fixed

Requirement $3.$ The owner has been considering ways to increase the sales volume. The owner thinks that $7,000$ pizzas could be sold per month by cutting the selling profit $($above the current level$)$ would be generated if the selling price were to be decreased? $($Hint: Find the restaurant's current monthly profit and compare it to the res and volume.$)$

Identify the profit formula and compute the monthly profit at the current and the new volume.

$5,000$ pizzas

$7,000$ pizzas

Since the restaurant will generate

the volume.