Dave Is the Owner of Dave's Pizza Palace

question 100

Multiple Choice

Dave is the owner of Dave's Pizza Palace.Dave is a profit-maximizing owner whose firm operates in a competitive market.An additional worker costs Dave $200 and has a marginal productivity of 40 pizzas.Assuming no other variable costs,what is the marginal cost of a pizza?

• A) $200
• B) $8
• C) $5
• D) There is insufficient information available to answer this question.

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Definitions:

Upper-middle Class

A socio-economic group characterized by high educational attainment, professional careers, and relatively high income.

Product Differentiation

The method of making a product or service stand out from the competition, enhancing its appeal to a specific target audience.

Value-based Pricing

Determining the product's price based on the customer's perceived value, emphasizing the product's benefits and differentiation from competitors.

High-quality Products

Items or services that surpass standard expectations in terms of performance, durability, and satisfaction.