2. Inputs and outputs

Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Tallahassee that specializes in vegan pizzas. Malika's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Malika signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Malika is unable to change the store's number of pizza ovens in the short run.

However, Malika does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Malika contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are _______ inputs, and pizza ovens are _______ inputs.

The following table presents Malika's daily production schedule.

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)
0	0
1	60
2	100
3	130
4	150
5	160

plot Malika's production function

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Vertical Axis= Total Cost (Dollars) from 0-200 / Horizontal Axis= Quantity of Output (Pizzas) from 0-200.

Hint: Be sure to plot the first point at (0, 0).

Suppose that Malika's only variable cost is labor. Assume that Malika faces daily fixed costs of $20 and pays all workers the same daily wage of $30.

NEXT:

Plot Malika's total cost curve on the following graph using the quantities from the preceding table.

Finally:

The law of diminishing marginal product of labor is demonstrated by which of the following?

Total output declines as you increase the quantity of labor.

Total output increases at a decreasing rate as you increase the quantity of labor.

Total output increases only when you increase both labor and ovens.