Use the following to answer questions : $$\begin{array}{l}
\text { Table: TC's Pizza Parlor }\
\begin{array} { c c c }
\hline \begin{array} { l }
\text { Slices } \
\text { of Pizza }
\end{array} & \text { Total Costs } & \text { Total Benefits } \
\hline 0 & \$ 10 & \$ 0 \
5 & 20 & 40 \
10 & 30 & 55 \
15 & 40 & 65 \
20 & 50 & 70 \
\hline
\end{array}
\end{array}$$
-(Table: TC's Pizza Parlour)Use Table: TC's Pizza Parlour.What is the optimal level of production?

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: TC's Pizza Parlor }\
\begin{array} { c c c } 
\hline \begin{array} { l } 
\text { Slices } \
\text { of Pizza }
\end{array} & \text { Total Costs } & \text { Total Benefits } \
\hline 0 & \$ 10 & \$ 0 \
5 & 20 & 40 \
10 & 30 & 55 \
15 & 40 & 65 \
20 & 50 & 70 \
\hline
\end{array}
\end{array}$$
-(Table: TC's Pizza Parlour)Use Table: TC's Pizza Parlour.What is the optimal level of production?

Quizplus · Accepted Answer

The optimal level of production is where the marginal benefit equals the marginal cost. From 10 to 15 slices, the marginal benefit is $10 (65-55)$ and the marginal cost is $10 (40-30)$, which are equal.

Use the Following to Answer Questions -(Table: TC's Pizza Parlour)Use Table: TC's Pizza Parlour