You have learned that variable costs change depending on the amount of the product the company is providing. fixed costs are the same no matter how much of the product or service the company is providing. the net profit of a company is money left over after subtracting all variable and fixed costs from the company's revenue (which is the total amount of money a business receives from consumers in exchange for its goods or services).
with that in mind, can you think of at least two factors that could affect the profit of a pizzeria? hint: you may first want to list the costs (both fixed and variable) of the pizzeria, then think about which ones could change and why, and finally reflect on how those changes will affect the pizzeria’s business profit.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.