The Table Below Shows a Pizzeria's Fixed Cost and Variable

question 72

Multiple Choice

The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Pizzas Per Day }\end{array} & \begin{array} { c } \text { Fixed Cost } \\\text { (\$/Day) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (\$/Day) }\end{array} \\\hline 0 & 500 & 0 \\\hline 25 & 500 & 150 \\\hline 50 & 500 & 250 \\\hline 75 & 500 & 450 \\\hline 100 & 500 & 850 \\\hline 125 & 500 & 1,650 \\\hline\end{array}$$ When the pizzeria makes 50 pizzas a day, its average total cost is ______.

• A)$5
• B)$10
• C)$15
• D)$20

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Definitions:

Constructive Delivery

A symbolic delivery that confers the right to take possession of property that cannot be physically delivered.

Exclusive Possession

The right of a tenant or lessee to use and control a property without interference from the landlord or lessor.

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Items in the possession of someone who is not their owner, under a temporary agreement, awaiting its return or fulfillment of a condition.

Property

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