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Exhibit 7-11 Short-Run Cost Curves Schedule for Pizzeria's Hourly Production

Question 235

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Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production  Total  Product  Total  Variable Cost  Total  Cost 0 pizzas $0$2010507020801003013015040230250\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Total } \\\text { Product }\end{array} & \begin{array} { c } \text { Total } \\\text { Variable Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} \\\hline 0 \text { pizzas } & \$ 0 & \$ 20 \\10 & 50 & 70 \\20 & 80 & 100 \\30 & 130 & 150 \\40 & 230 & 250 \\\hline\end{array}
-In Exhibit 7-11, the average total cost or producing 40 pizzas per hour is equal to:


A) $5 per pizza.
B) $5.75 per pizza.
C) $6.25 per pizza.
D) $10 per pizza.

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