Question

2. Inputs and outputs Dina's Performance Pizza is a small restaurant in Dallas that sells gluten-free pizzas. Dina's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Dina signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Dina's kitchen cannot fit more than two ovens, Dina cannot change the number of ovens she uses in her production of pizzas in the short run. However, Dina's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Dina lets them know how many workers she needs for each day of the week. In the short run, these workers are_ inputs, and the ovens are inputs. Dina'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 (Number of workers) Output Pizzas) Marginal Product of Labor Pras)

Answer 1

Workers are variable input and ovens are fixed input

MPL = Change in output per increase in labor

TC = VC + FC

Labors	Output	Per labor Cost	MPL (Marginal product of labor	Total Variable cost	Fixed cost	Total cost
0	0	0	0	0	30	30
1	50	30	50	30	30	60
2	90	30	40	60	30	90
3	120	30	30	90	30	120
4	140	30	20	120	30	150
5	150	30	10	150	30	180

Production Function 160 140 120 100 80 60 40 20 0 1 2 4 6 LD Ln st

Total cost 200 180 160 140 120 100 Total cost 80 60 40 20 0 0 50 100 150 200