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 shut-down point is found at a price 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 shut-down point is found at a price equal to:

Quizplus · Accepted Answer

The shut-down point is the point at which the restaurant should stop producing because the revenue earned is not enough to cover the variable costs. The shut-down point occurs when the price is below the minimum average variable cost, which in this case is at 10 pizzas. At 10 pizzas, the total variable cost is $200, and the average variable cost is $20. Any price lower than $20 would not cover the variable costs, and the restaurant should shut down. Therefore, the minimum price at the shut-down point is $20, and since each pizza costs $20, the shut-down point occurs at 1 pizza, which costs $20. So, the correct answer is B.

Below Are the Costs for a Pizza Restaurant, the Output