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Solve this in detail Part B (10 marks)_ Uncle Luigi has run his own pizza restaurant for 30 years. He owns the building, which means

Solve this in detail

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Part B (10 marks)_ Uncle Luigi has run his own pizza restaurant for 30 years. He owns the building, which means he pays no rent to anyone. He usually employs 4-5 people every day to produce pizza for dining in and home delivery. During the busy months before Christmas, the demand for his pizza increases signicantly and Luigi needs to hire more staff to produce more pizza. Along the years he has started to notice a pattern where, with each additional staff he hires, his production of pizza increases by smaller and smaller increments. In fact, beyond hiring 8-9 people in the kitchen, he can't seem to increase his pizza production at all, no matter how many extra staff he hires and how qualied these people are. Uncle Luigi complains to his nephew, who studies economics, that temporary staff are lazy and unmotivated because they can't seem to be able to produce much pizza, even if they work alongside the experienced staff. 3) Draw the production function of pizza in this restaurant and the marginal product of labour that matches the scenario described above. Also, draw the corresponding marginal cost function for the production of pizza. You are uncle Luigi's nephew. Your job is to evaluate for him whether the temporary staff is getting increasingly lazy, or whether there are other reasons behind their disappointing productivity. b) Given the theories learned in this course, why do you think the production of pizza is increasing by smaller and smaller amounts with each additional new person hired? (2) Can you suggest a solution that allows uncle Luigi to increase his production of pizza while avoiding this low productivity

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