Question
Question 2 . Blaze Pizza at Stonestown Galleria serves pizza to all SFSU students, faculty, and staff. Suppose it can hire two types of labor:
Question 2. Blaze Pizza at Stonestown Galleria serves pizza to all SFSU students, faculty, and staff. Suppose it can hire two types of labor: high productivity labor (L1) and low productivity worker (L2), or a combination of both. High productivity worker can produce 20 pizza per hour while low productivity worker only produces 10 pizza per hour.
a) What kind of production function that gives Blaze Pizza's output q as a function of L1 and L2.
b) What kind of production function does the Blaze Pizza have?
c) Now suppose the firm is paying low productivity workers $20 and high productivity workers $30. What are the firm's daily profits if it can sell pizza for $10 each and produce 200 pizzas per day?
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