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

  Price discrimination is pricing strategy whereby firm prices

Price discrimination is a pricing strategy whereby a firm's prices for the same or very similar goods vary for customers in different markets. This can help the firm attain more profits compared to charging a single price. For example, a movie theath..

  Assume the demand for plastic surgery is price inelastic

Assume the demand for plastic surgery is price inelastic. Are the following statements true of false? Explain. When the price of plastic surgery increases, the number of operations decreases.The percentage change in the price of plastic surgery is le..

  At a time when demand for ready-to-eat cereal was stagnant

at a time when demand for ready-to-eat cereal was stagnant a spokesperson for the cereal maker kelloggs was quoted as

  How many bakers are required given the current level

If Evren wishes to make 25 tons of donuts, how many bakers are required given the current level of capital? How much will it cost to produce this (total cost)?

  What is the effect on national income and output

If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd))

  What are the two components of consumption spending

According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes? Explain.

  How is pollution an example of negative externality

How is pollution an example of a negative externality? Explain how negative externalities and, more specifically, pollution often result from a lack of clear property rights.

  Indicate whether expect demand to be inelastic or elastic

For every of the subsequent goods, indicate whether you expect demand to be inelastic or elastic also explain your reasoning

  Discuss whether or not oligopolies always bad for society

Discuss whether or not oligopolies are always bad for society, using examples from the industries you described.

  Optimal number of machines for the company

Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company.

  Best represented the ethos of texas public servant

Consider the famous governors we have discussed in the lessons. Which of these governors do you believe to have been the most influential in growing the powers of the office, in using the office effectively, and best represented the ethos of a Texas ..

  With the opportunity for beneficial learing

Minimum efficient scale will increase if fixed costs increase. With the opportunity for beneficial learing , a firm's lerning curve is upward sloping. The percentage change in profit that results from a 1% change in units sold equals margianl profit...

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