Question:

1. Suppose you decide to open your own pizza restaurant. What would be the inputs and outputs of your pizza restaurant?
2. Briefly explain how you would decide on what price to charge and how many pizzas to produce.
3. Suppose that you decided to charge $10 per pizza and you are able to sell 700 pizzas per month. The cost of operating your restaurant is equal to $5,000 per month. You also had to quit your job to operate your restaurant which was paying you $2500 per month.

• What are your explicit costs?
• What are your implicit costs?
• What is your economic profit?
• Was it a smart decision to open your own restaurant if you are only motivated by profit? Explain.

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document