If a pizza parlor faces the following monthly fixed costs: Rent: $2,000 Equipment rental: $1,000 Insurance: $500 What is their average fixed cost of producing 350 pizzas per month if its variable costs are $2 per pizza? $10 none of these answers $12 $350

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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If a pizza parlor faces the following monthly fixed costs:
Rent: $2,000
Equipment rental: $1,000
Insurance: $500
What is their average fixed cost of producing 350 pizzas per month if its variable
costs are $2 per pizza?
$10
none of these answers
$12
$350
Transcribed Image Text:If a pizza parlor faces the following monthly fixed costs: Rent: $2,000 Equipment rental: $1,000 Insurance: $500 What is their average fixed cost of producing 350 pizzas per month if its variable costs are $2 per pizza? $10 none of these answers $12 $350
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