Answered step by step
Verified Expert Solution
Question
1 Approved Answer
thank you Van is opening a new pizza restaurant that will use a combination of workers and ovens to produce pizzas. Van knows from experience
thank you
Van is opening a new pizza restaurant that will use a combination of workers and ovens to produce pizzas. Van knows from experience that the total number of pizzas he can produce in an hour is given by the function q=5K0.5L0.5, where q is the number of pizzas per hour, K is the number of ovens, and L is the number of workers. Suppose another pizza restaurant in the same town can produce 29 pizzas per hour. Being an extremely competitive person, Van wants to produce 30 pizzas per hour. Complete the third column of the foliowing table by entering the number of workers needed to produce 30 pizzas per hour based on the given number of ovens and the production function q1=5K0.5L0.5. (Note: Because it is not possible to hire fractional workers, you must round to the nearest whole worker when necessary.) Using the numbers you found in the table, use the blue points (circle symbol) to plot the isoquant representing q1=30. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Suppose that a year after opening, Van has developed a new system that has increased the productivity of his piza restaurant, changing the production function to q2=6K05L0.5. Complete the fourth column of the previous table by entering the number of workers required to produce 30 plazas per hour based on the given number of ovens and his new production function. (Note: Because it is not possible to hire fractional workers, you must round to the nearest whole worker when necessary.) Using your most recent calculations, use the orange points (square symbol) to plot the boguant representing q2=30 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started