Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Inputs and outputs Brian's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Brian's very tiny kitchen has barely enough room
2. Inputs and outputs Brian's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Brian's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Brian signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Brian's kitchen cannot fit more than three ovens, Brian cannot change the number of ovens he uses in his production of pizzas in the short run. However, Brian's decision regarding how many workers to use can vary from week to week because his workers tend to he students. Each Monday, Brian lets them know how many workers he needs for each clay of the week. In the short run, these workers are v inputs, and the ovens are 7 ll'lpUtE. m Brian's daily production schedule is presented in the following table. xed Fill in the blanks to complete the Marginal Product of Labor column for each worker. Labor Output Marginal Product of Labor (Number of workers} (Pizzas) (Pizzas) I] 100 130 240 23".] HEDGE Ui-hLIIMHD 300 On the following graph, plot Brian's production function using the green points (triangle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Hint: Be sure to plot the first point at (0, 0). 300 A 270 Production Function 240 210 180 150 QUANTITY OF OUTPUT (Pizzas) 120 90 3.0 5 2 LABOR (Number of workers)Suppose that labor is Brian's only variable cost and that he has a fixed cost of $50 per day and pays each of his workers $40 per day. Use the orange points (square symbol) to plot Brian's total cost curve on the following graph using the quantities from the preceding table. 300 -0 270 Total Cost 240 210 180 TOTAL COST (Dollars) 150 120 90 30 30 60 90 120 150 180 210 240 270 300 QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns.True or False: The shape of the production function reflects the law of increasing marginal returns. O True O False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started