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Consider the following cost information for a pizzeria: 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? Explain.

(a) Marginal cost of $n^{t h}$ dozen pizza $=$ Total cost of producing $n$ dozenpizza - Total cost of producing $n-1$ dozen pizza(b) Marginal cost of $n^{t h}$ dozen pizza $=$ Variable cost of producing $n$dozen pizza - Variable cost of producing $n-1$ dozen pizza

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okay. Questions. Six offers thiss information for making pizza. It's a question. A what? Isthe the pizzerias. Fixed costs. So fixed cost means the cost you have, even though you are producing nothing. So yes, question. The fixed cost is just a total cost here. Three hundred dollars when you're producing zero pizza because you'll be constructed table teach you couple with a marginal cost per thousand piece for does and pieces offer and using the information on total cost. So the marginal cost is the difference between all these numbers. So we're here. The marginal cost for producing one thousand pizza is fifty dollars. And then if you have one dozen Peters, you wantto produce the second dozen you need to spend forty extra dollars and then four hundred twenty minus three hundred ninety's thirty and then also thirty here. Then this minus this forty, then five hundred forty minus four in uniting fifty. So all the numbers in red here is the marginal cost. Okay. And then there's asking us also calculated margin on past closet, since we've simply information on variable cost. Okay, so it is also marginal cost here, but then very important. Um, marginal variable cost is not taking to account, um, fixed costs. So now it is fifty times minus zero is also fifty. And then, like my wrists thrifty. So we do the same thing here, then thirty. So as we are calculating to down the down each rose, we kind of observed that these two columns were generating. I have the same number, right? Exactly the same fifty, forty, thirty, thirty, forty and fifty. So why said the case? Because total cost is fixed costs three hundred plus variable cost. So this column is actually three hundred plus all the number here. So the difference between these two columns are all the same because it is just the cost, which is the variable cost that you have to Spain for making one extra dozens of Peter so it does not have it does not have anything to do with face cost. So that's the idea. We have to know that fixed cause will not affect your marginal cost when producing products

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