Pat's Pizza Kitchen is a price taker, and the table below shows its costs ofproduction. What is Pat's shutdown point and what is Pat's economic loss if it shutsdown temporarily?Output(pizzas perhour)01N345Total cost(dollars perhour)102130415469Pat's shutdown point is a price of $10 a pizza and economic loss is $10.Pat's shutdown point is a price of $11 a pizza and economic loss is $22.Pat's shutdown point is a price of $9 a pizza and economic loss is $20.Pat's shutdown point is a price of $13 a pizza and economic loss is $30.

Shutdown Price:In perfect competition, the shutdown price is that point where the firms denied to…

Pat's Pizza Kitchen is a price taker, and the table below shows its costs of production. What is Pat's shutdown point and what is Pat's economic loss if it shuts down temporarily? Output (pizzas per hour) 0 Total cost (dollars per hour) 10

Pat's Pizza Kitchen is a price taker, and the table below shows its costs of production. What is Pat's shutdown point and what is Pat's economic loss if it shuts down temporarily? Output (pizzas per hour) 0 Total cost (dollars per hour) 10

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...

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Question

Pat's Pizza Kitchen is a price taker, and the table below shows its costs of
production. What is Pat's shutdown point and what is Pat's economic loss if it shuts
down temporarily?
Output
(pizzas per
hour)
0
1
N
3
4
5
Total cost
(dollars per
hour)
10
21
30
41
54
69
Pat's shutdown point is a price of $10 a pizza and economic loss is $10.
Pat's shutdown point is a price of $11 a pizza and economic loss is $22.
Pat's shutdown point is a price of $9 a pizza and economic loss is $20.
Pat's shutdown point is a price of $13 a pizza and economic loss is $30.

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