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Lesechka [4]
4 years ago
8

Jill Johnson owns a pizzeria. She currently produces 10,000 pizzas per month at a total cost of $500. If she produced one more p

izza her total cost rises to $500.11. What does this tell us about Jill's marginal cost of producing pizzas?
Business
1 answer:
jekas [21]4 years ago
4 0

Answer:

Marginal cost is rising.

Explanation:

Given that,

Jill Johnson currently produces = 10,000 Pizzas per month

At a total cost = $500

Marginal cost refers to the cost of producing one more unit of a commodity to satisfy a given want.

Average total cost = $500 ÷ 10,000

                               = $0.05

Here, Marginal cost of producing pizzas is as follows:

= Total cost of producing 10,001 pizzas - Total cost of producing 10,000 pizzas

= $500.11 - $500

= $0.11

Therefore, marginal cost of producing an additional pizza is $0.11 and it is rising, since average total cost is less than marginal total cost and ATC rising.

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Answer:

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Explanation:

Re-intermediation is the method applied by most businesses in using the internet to bring together new customers for a business. The advent of technology can afford business owners the possibility of eliminating physical intermediaries in a business. For example, house agents help people who are seeking for new places to live in, find houses easily. Through the internet, however, landlords can directly advertise their vacant houses, thus eliminating the agent relationship which would have served as an intermediary.

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Answer:

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Explanation:

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The statement above is TRUE.
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