Exhibit 7-11 Short-run cost schedule for pizzeria's hourly production

In Exhibit 7-11, the average total cost or producing 40 pizzas per hour is equal to:

Question

Exhibit 7-11 Short-run cost schedule for pizzeria's hourly production

In Exhibit 7-11, the average total cost or producing 40 pizzas per hour is equal to:

Quizplus · Accepted Answer

Looking at the short-run cost schedule, producing 40 pizzas per hour has a total cost of $250 and the quantity produced is 40 pizzas. Dividing the total cost by the quantity produced gives us an average total cost of $6.25 per pizza. Therefore, the correct answer is C.

Exhibit 7-11 Short-Run Cost Schedule for Pizzeria's Hourly Production