Question

Teresa's daily production schedule is presented in the following table.

Fill in the blanks to complete the Marginal Product of Labor column for each worker.

Labor	Output	Marginal Product of Labor
(Number of workers)	(Pizzas)	(Pizzas)
0	0
1	70
2	120
3	160
4	190
5	200

On the following graph, plot Teresa's production function using the green points (triangle symbol).

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

Hint: Be sure to plot the first point at (0, 0).

Production Function012345200180160140120100806040200QUANTITY OF OUTPUT (Pizzas)LABOR (Number of workers)

Suppose that labor is Teresa's only variable cost and that she has a fixed cost of $10 per day and pays each of her workers $50 per day.

Use the orange points (square symbol) to plot Teresa's total cost curve on the following graph using the quantities from the preceding table.

Total Cost020406080100120140160180200280260240220200180160140120100806040200TOTAL COST (Dollars)QUANTITY OF OUTPUT (Pizzas)

True or False: The shape of the production function reflects the law of diminishing marginal returns.

True

False

Answer 1

athut (7 342) Marginal Produrt of labor / (li332 70 120 The 190 20 (10-0) - ) (120-70)=50 (160-120) = 40 (190-160) = 30 (20-190)=10. 2.09 LAPL = chunge in output change in Labor

outlet lobor Jetil cest th Fixed at variable cast 1 (5) (Pizze (wo of weak- 50 120 100 150 149. 200 200 10 250 260. Vinable cest = (Laber) (Labur cust). Total cost = fixed cest & vanable cost Total T IL 20 40 Go IL11 12 14 160 190 200 80 to TRUE: The shape of production function reflects the law of diminishing - merginal return.