Kate’s Katering provides catered meals, and the catered meals industry is perfectly competitive. Kate’s machinery costs
Posted: Sun May 29, 2022 7:32 pm
Kate’s Katering provides catered meals, and the catered meals
industry is perfectly competitive. Kate’s machinery costs $50 per
day and is the only fixed input. Her variable cost consists of the
wages paid to the cooks and the food ingredients. The variable cost
per day associated with each level of output is given in the
accompanying table.
Quantity of meals
TVC
TC
AVC
ATC
MC
0
0
5
100
10
200
15
330
20
500
25
720
industry is perfectly competitive. Kate’s machinery costs $50 per
day and is the only fixed input. Her variable cost consists of the
wages paid to the cooks and the food ingredients. The variable cost
per day associated with each level of output is given in the
accompanying table.
Quantity of meals
TVC
TC
AVC
ATC
MC
0
0
5
100
10
200
15
330
20
500
25
720