Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
g
2
2
b
2
M
2
V
2
f
2
c
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
sgy_89 sgy_89
wrote...
Go to Answer
Posts: 677
Rep: 0 0
7 years ago
Steve's Pizzeria currently bakes 100 pizzas per week which it sells at a price of $15 per pizza. Steve believes he could sell 120 pizzas each week if he lowered price to $14 per pizza. If it costs $10 to prepare each additional pizza, should Steve lower price and increase production?
A) Yes. He will sell each pizza for $14, a price that greatly exceeds their $10 cost.
B) No. It will cost him an additional $200 to make the 20 additional pizzas but they generate only $180 of additional revenue.
C) Yes. It will cost him only an additional $200 to make the 20 additional pizzas but they generate $280 of additional revenue.
D) No. Firms should never consider lowering the price of their products.
E) Yes. Firms should always try to sell as much of their product as possible.
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
Read 123 times
1 Reply
Replies
Answer verified by a subject expert
hecosmetichecosmetic
wrote...
#1
Top Poster
Posts: 687
Rep: 8 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

sgy_89 Author
wrote...

7 years ago
This helped my grade so much Perfect
elizabetheldrid
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
my2redeyes
wrote...

2 hours ago
Helped a lot
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  499 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 200
  
 857
  
 192
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 374
Previous poll results: What's your favorite math subject?