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S . Inputs and autputl Carlos's Performance Paza is a small restaurant in San Diego that sels gluten - free pizaas. Carlas's very tiny kitden
S Inputs and autputl
Carlos's Performance Paza is a small restaurant in San Diego that sels glutenfree pizaas. Carlas's very tiny kitden has barely ernough rooms for the
tws avens in which hia workers bake the piceasi. Carlos signed a lease obligating him to pay the rent for the two ovens for the reat year. Because of
this, and because Carlas's kitchen cannet fie more than two ovens, Garfos carnat dhange the number of avens he uses in Fis production of pizzas in
the short run.
However, Carlos's decision regarding how many workers to use can vary froms week to week because his workers tend to be students. Each Monday,
Carlos lets them know how many workers he needs for each day of the week. In the short run, these workers are variable puts, and the ovens are fixed inputs
Carlos's daily production schadule is presented in the following table.
Fill in the blanks to complute the Marginal Physical product of Labor column for each worker.
On the following graph, plot Carlos's total physical product curve TPP using the green points triangle symbol
Note: Plot your points in the order in which you would like them connected. Line segments wil connect the points automatically.
Hint: Be sure to plot the first point at
Suppose that labor is Carlos's only variable cost and th
at he has a fixed cost of $ per day and pays each of his workers $ per day. Use the orange points square symbol to plot Carlos's total cost curve on the following graph using the quantities from the preceding table
True or False: The shape of the total physical product curve reflects the law of diminishing marginal retums.
True
False
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