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

question 113

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 variable cost is ______.

• A)$5
• B)$10
• C)$15
• D)$20

---

Definitions:

Voidable

A legal term describing a transaction or agreement that may be annulled or invalidated by one of the parties involved due to certain defects.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to be enforceable.

Writing

The act or process of composing text for various purposes, such as communication, expression, or documentation.

Foolish Bargain

An agreement made where one or more parties make poor decisions or agree to terms that are not in their best interest.