Suppose Angelo Sessa, owner of Sezz Medi Brick Oven Pizza in NYC, ...

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Suppose Angelo Sessa, owner of Sezz Medi Brick Oven Pizza in NYC, earns 350,000 in revenue per year. He spends 800 a month on ash wood for his stove, 2000 a month on rent, and 1500 a month on ingredients.
 
  He used to be a lawyer and earned 240,000 a year before he opened up Sezz Medi. Normal profit for a pizza business is 30,000. What is Angelo's economic profit? A) 28,400
  B) 350,000
  C) 58,400
  D) 268,400

Question 2

Some of the cost curves for Ike's Ice Cream Kitchen are given in the above figure. At which of the following levels of output will AFC be the lowest?
 
  A) at 0 gallons
  B) at 10 gallons
  C) at 40 gallons
  D) at 70 gallons

[scikid]

Answer to Question 1

A

Answer to Question 2

D