The Local Convenience Store Makes Personal Pan Pizzas

question 46

Essay

The local convenience store makes personal pan pizzas. Currently, their oven can produce 50 pizzas per hour. It has a fixed cost of $2,000, and a variable cost of $0.25 per pizza. The owner is considering a bigger oven that can make 75 pizzas per hour. It has a fixed cost of $3,000, but a variable cost of $0.20 per pizza.
a. At what quantity do the two ovens have equal costs?
b. If the owner expects to sell 9,000 pizzas, should he get the new oven?

---

Definitions:

Empty-chair Technique

A psychotherapy method where clients express their thoughts and feelings as if they are talking to a specific person or part of themselves, represented by an empty chair.

Person-centered

A therapeutic approach developed by Carl Rogers emphasizing empathy, genuineness, and unconditional positive regard in the therapeutic relationship.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-client relationship, the environmental and social contexts of a person's life, and the self-regulating adjustments people make as a result of their overall situation.

Perls

Refers to Frederick Perls, a psychiatrist and psychotherapist known for developing Gestalt therapy, focusing on awareness and personal responsibility.