User Account

All Pages

Marginal costs of producing pizzas

Assignment Help Business Economics
Reference no: EM131577328

Marginal Pizza is a famous pizzeria in town, which is a competitive market. Below are a series of "changes" in the market for pizza where Marginal Pizza operates. For each of the changes, please provide the following two things:

WHAT happens to the price of pizza?

EXPLANATION for the change (if any), in the price of pizza 

Make sure to refer to fixed costs, variable costs, and/or marginal costs in your answer.

I am providing THE answer to part (a), as an example, so that you know the format I am expecting in your answers (this means YOU DO NOT have to answer part (a).

(EXAMPLE)

a)  The price of cheese goes up.

ANSWER

What happens to the price of pizza? - Increases

Explanation for the change (if any) in the price of pizza - cheese is an input in the production of most pizzas. An increase in the price of the inputs, increases the marginal costs of producing pizzas, which decreases supply and increases the market price.

b) A new restaurant tax of 50¢ per slice of pizza is imposed.

c) Marginal Pizza is discovered to be in violation of a safety code, and the violation is one that would be prohibitively expensive to correct. As a result, Marginal is certain to incur a fine of $500 per year from now on (assume Marginal Pizza will not go out of business as a result of paying the fine).

d) A new restaurant tax of $500 per year is imposed.

Reference no: EM131577328

Questions Cloud

Define the enforcement of drug laws in the united states : Define the enforcement of drug laws in the United States
Describe the different types of firewalls : Describe the different types of firewalls. Analyze how the security requirements within different security zones will impact the firewall configurations.
Analyse the criminal liability of gary and giorgio : Analyse the criminal liability of Gary and Giorgio, Gary and Giorgio decide to go out and see if there is anyone on the street
Think about the processes of forming a judgment : Think about the processes of forming a judgment and persuading others in your professional environment.
Marginal costs of producing pizzas : An increase in the price of the inputs, increases the marginal costs of producing pizzas, which decreases supply and increases the market price.
Examine the different types of technologies applied : Examine the different types of technologies applied to LensCrafters' service operations and evaluate how the technologies strengthen the value chain.
Calculate the output production : Calculate APL and MPL. Determine if the production function exhibits the law of diminishing marginal returns. Calculate the output (production).
Develop a plan designed to change a childs negative behavior : Develop a plan designed to change a child's negative behavior. What is the specific behavior(s) you are seeking to change?
What is the ucr. what are its major components : What is the UCR. What are its major components. What are the major components of the crime index

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd