Question

2. Inputs and outputs Larry's Performance Plaza is a small restaurant in Philadelphia that sells gluten free pizzas. Larry's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Larry signed a lease obligating him to pay the rent for the three ovens for the next year Hecause of this, and because Lany's kitchen cannot fit more than three ovens, Larry cannot change the number of ovens he uses in his production of pizzas in the short run However, Larry decision regarding how many workers to use can vary from week to week becse his workers tend to be students. Each Monday, Larry lets them know how many workers he needs for each day of the week. In the short run, these workers are inputs, and inputs. Larry's daily production schedule is presented in the following table. Fill in the blanks to complete the Marginal Product of Labor columns for each worker Labor (Number of workers) Output (Pisa) Marginal Product of Labor (Picas) nction On the following graph, plor Larry's production functioning the green points (triangle symbol).

Answer 1

workers = variable inputs

ovens = fixed inputs

L	Q	MPL	FC	VC	TC
0	0		20	0	20
1	60	60	20	30	50
2	100	40	20	60	80
3	130	30	20	90	110
4	150	20	20	120	140
5	160	10	20	150	170

Production Function QUANTITY OF OUTPUT (Pizzas) LABOR (Number of workers)

Total Cost TOTAL COST (Dollars) 0 20 180 200 40 60 80 100 120 140 160 QUANTITY OF OUTPUT (Pizzas)

Option(B) is correct