-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. What is Silvio's long-run average cost if the output is 100 pizzas per week?
A) $8.40
B) $11.00
C) $19.40
D) $17.90

Question

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. What is Silvio's long-run average cost if the output is 100 pizzas per week?
A) $8.40 
B) $11.00 
C) $19.40 
D) $17.90

Quizplus · Accepted Answer

The Answer of 
-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. What is Silvio's long-run average cost if the output is 100 pizzas per week?
A) $8.40 
B) $11.00 
C) $19.40 
D) $17.90

-Silvio's Pizza Is a Small Pizzeria