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5. Inputs and outputs Janet's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Janet's very tiny kitchen has barely enough room
5. Inputs and outputs Janet's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Janet's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Janet signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Janet's kitchen cannot fit more than three ovens, Janet cannot change the number of ovens she uses in her production of pizzas in the short run. However, Janet's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Manday, Janet lets them know how many workers she needs for each day of the week. In the short run, these workers are W inputs, and the ovens are W inputs. Janet's daily production schedule is presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker. Qutput Marginal Physical Product of Labor Number of Workers (Pizzas) (Pizzas) 0 100 180 240 280 300 JJ Mmook W M= O On the following graph, plot Janet's total physical product curve (TPP) using the green points (triangle symbaol). 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). Hint: Be sure to plot the first point at (0, 0). (? 300 A 270 TPP 240 210 180 150 QUANTITY OF OUTPUT (Pizzas) 120 08 80 30 3 5 LABOR HIRED (Number of workers) Suppose that labor is Janet's only variable cost and that she has a fixed cost of $50 per day and pays each of her workers $40 per day. Use the orange points (square symbol) to plot Janet's total cost curve on the following graph using the quantities from the preceding table.Suppose that labor is Janet's only variable cost and that she has a fixed cost of $50 per day and pays each of her workers $40 per day. Use the orange points (square symbol) to plot Janet's total cost curve on the following graph using the quantities from the preceding table. 300 -0~ 270 Total Cost 240 210 180 120 TOTALCOST (Dollars) o a0 60 20 120 150 180 210 240 270 300 QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the total physical product curve reflects the law of increasing marginal returns. O True O False
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