The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.
When the pizzeria makes 100 pizzas per day, it earns an economic ________ of ________.
A)loss; $650
B)profit; $650
C)loss; $500
D)profit; $1,150

Question

The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.   
When the pizzeria makes 100 pizzas per day, it earns an economic ________ of ________.
A)loss; $650 
B)profit; $650 
C)loss; $500 
D)profit; $1,150

Quizplus · Accepted Answer

Economic profit equals total revenue minus total cost. At 100 pizzas a day, total revenue is $2,000 (= $20 × 100)and total cost is $1,350 (= $500 + $850).

The Accompanying Table Shows a Pizzeria's Fixed Cost and Variable