Below are the costs for a pizza restaurant, the output is pizza, in units of (pizza).
$\begin{array}{ll}
\mathrm{P}_{\mathrm{Y}}=\$ 20 / \text { pizza } & \text { TFC }=\$ 10 \
\underline{\mathrm{Y} \text { (pizzas })} & \underline{\mathrm{TVC}(\$)} \
0 & 0 \
1 & 20 \
2 & 30 \
3 & 35 \
4 & 42 \
5 & 50 \
6 & 70 \
7 & 100
\end{array}$
-The AVC of producing 5 pizzas is equal to:

Question

Below are the costs for a pizza restaurant, the output is pizza, in units of (pizza).
 $\begin{array}{ll}
\mathrm{P}_{\mathrm{Y}}=\$ 20 / \text { pizza } & \text { TFC }=\$ 10 \
\underline{\mathrm{Y} \text { (pizzas })} & \underline{\mathrm{TVC}(\$)} \
0 & 0 \
1 & 20 \
2 & 30 \
3 & 35 \
4 & 42 \
5 & 50 \
6 & 70 \
7 & 100
\end{array}$
-The AVC of producing 5 pizzas is equal to:

Quizplus · Accepted Answer

To calculate AVC, we need to divide TVC by the output (i.e. number of pizzas).

The TVC for producing 5 pizzas is $50 (from the table).

AVC = TVC/output = $50/5 = $10

Therefore, the answer is B.

As for the best choice(s), we would need more information such as the market demand, price of pizza, and the restaurant's profit goals to make a decision. This information is not provided in the given table.

Below Are the Costs for a Pizza Restaurant, the Output