Question: Consider the following cost information for a pizzeria:
Q (DOZENS) TOTAL COST VARIABLE COST
0 $300 $ 0
1 350 50
2 390 90
3 420 120
4 450 150
5 490 190
6 540 240
a. What is the pizzeria's fixed cost?
b. Construct a table in which you calculate the marginal cost per dozen pizzas using the information on total cost. Also calculate the marginal cost per dozen pizzas using the information on variable cost. What is the relationship between these sets of numbers? Comment.