00:02
We're going to look at the following cost information for a pizzeria.
00:05
So we have this table here, and we're just using this as an example.
00:10
And here's our quantity, and it's in dozens.
00:12
Here's the total cost based on the quantity made.
00:15
And here are our variable costs, again, based on the quantity.
00:20
What is the pizzeria's fixed costs? so the fixed cost is the amount they're going to pay regardless of if they make any pizzas.
00:30
And we can see here that when they make zero, the total cost is three.
00:33
$300 and there's no variable cost.
00:37
So when output is nil, meaning zero, the variable cost is also nothing.
00:42
So total cost equals variable cost plus the total cost is there's zero variable fixed costs when there's zero made plus the fixed cost equals 300...