2. Inputs and outputs Elleen's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Eileen's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Eleen signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Elleen's litchen cannot fit more than two ovens, Eileen cannot change the number of ovens she uses in her production of pizzas in the short run. However, Eleen's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Eileen lets them know how many workers she needs for each day of the week. In the short run, these workers are inputs, and the ovens Inputs. are variable Elleen's daily production schedule is presented in the following table; fixed Fill in the banks to complete the Marginal Product of Labor column for each worker Labor Output Marginal Product of Labor (Number of workers) (Piezas) (Pizzas) 0 0 1 70 2 120 3 160 190 4 5 200 On the following graph, plot Elleen'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). 2 200 130 100 Production Function 140 120 100 QUANTITY OF OUTPUT (Pzzas) 8 8 00 00 LABOR (Number of workers) Suppose that labor is Elieen's only variable cost and that she has a fixed cost of $10 per day and pays each of her workers $50 per day. Suppose that labor is Eileen's only variable cost and that she has a fixed cost of $10 per day and pays each of her workers $50 per day. Use the orange points (square symbol) to plot Eileen's total cost curve on the following graph using the quantities from the preceding table. -0- Total Cost 100 TOTAL COST (Dolars) 8 8 8 8 8 8 8 % 0 120 w 100 20 40 600 100 120 140 100 150 200 QUANTITY OF OUTPUT (Pezas) True or False: The shape of the production function reflects the law of diminishing marginal returns True False Grade It Now Save & Continue