Question

Hubert's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Hubert's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Hubert signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Hubert's kitchen cannot fit more than three ovens, Hubert cannot change the number of ovens he uses in his production of pizzas in the short run. However, Hubert's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Hubert lets them know how many workers he needs for each day of the week. In the short run, these workers are inputs, and the ovens are inputs. Hub fixed production schedule is presented in the following table. variable Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker. Output (Pizzas) Marginal Physical Product of Labor (Pizzas) Number of Workers 150

Answer 1

In short men, these workers are variable inputs and overs are fixed inputs: No. of workers Output MPP T Fixed Cost = 30 workers wage=30 50 90 40 120 90 150 VV VVV 120 140 > 20 210 150 TC Hot output L 20 40 60 80 100 120 140 Teure shape of TPP reflects law of DMR. cty of output 160 go o TPP 120 ta 40 t to to 1 2 3 4 5