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

question 62

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 125 pizzas per day, its total revenue is:

• A)$2,500
• B)$1,250
• C)$125
• D)$20

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Definitions:

Land Cultivation

The process of preparing land for growing crops, including plowing, applying fertilizers, and managing weeds.

Farmers

Individuals who engage in agriculture, raising living organisms for food or raw materials, primarily working on farms or in the agricultural sector.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in the consumer's income.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to normal goods.