Use the following to answer question:
-(Table: TC's Pizza Parlor)Use Table: TC's Pizza Parlor.What is the optimal level of production?

Question

Use the following to answer question: 
-(Table: TC's Pizza Parlor)Use Table: TC's Pizza Parlor.What is the optimal level of production?

Quizplus · Accepted Answer

The optimal level of production is where marginal cost equals marginal revenue. From the table, we can see that at 15 slices, the marginal cost is $6 and the marginal revenue is $8, which means that increasing production beyond 15 slices would result in a decrease in profit. Therefore, producing 15 slices is the best choice for TC's Pizza Parlor.

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