Question 23-4 from Economics Today text, 16th edition (p.

529)
The following table represents the hourly output and cost structure for a local pizza shop. The market is perfectly
competitive, and the market price of a pizza in the area is $10. Total costs include all opportunity costs.
Total Hourly
Output &
Sales of
Pizzas

0
1
2
3
4
5
6
7
8
9
10

Total
Hourly
Cost
($)
5
9
11
12
14
18
24
32
42
54
68

a) Calculate the total revenue and total economic profit for this pizza shop at each rate of output.
b) Assuming that the pizza shop always produces and sells at least one pizza per hour, does this appear to be a
situation of short-run or long-run equilibrium?
c) Calculate the pizza shops marginal cost and marginal revenue at each rate of output. Based on marginal
analysis, what is the profit-maximizing rate of output for the pizza shop?
This is where Im at with it please help! Thank you.
Total
Output
& Sales
per
Hour
(Q)

0
1
2
3
4
5
6
7
8
9
10

Total
Cost
(TC)
$/hr

5
9
11
12
14
18
24
32
42
54
68

Marke
t Price
(P)

10
10
10
10
10
10
10
10
10
10
10

Total
Reven
ue
(TR)

Total
Econo
mic
Profit

Ave
Total
Cost
(ATC)

Ave
Variab
le
Cost
(AVC)

Margin
al Cost
(MC)

Margin
al
Reven
ue
change
in TR/
change
in Q

10
10
10
10
10
10
10
10
10
10

P*Q

TR-TC

TC/Q

change
in TC/
change
in Q

0
10
20
30
40
50
60
70
80
90
100

-5
1
9
18
26
32
36
38
38
36
32

9.00
5.50
4.00
3.50
3.60
4.00
4.57
5.25
6.00
6.80

4
2
1
2
4
6
8
10
12
14