Question

2. Inputs and outputs Eric's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Eric's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas, Eric signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this and because Eric's kitchen cannot fit more than two ovens, Eric cannot change the number of ovens he uses in his production of pizzas in the short run. However, Eric's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Eric lets them know how many workers he needs for each day of the week. In the short run, these workers are resources, and the ovens are resources. Ene's daily production schedule is presented in the following table. Fall in the blanks to complete the Marginal Product of Labor column for each worker. Total Product Marginal Product of Labor Number of Workers (Pizzas) (Pizzas) 0

Answer 1

the variable resources, fixed resources. workers are overs are WL TPL MPL 100 or who 100 180 800 240 280 300 40 20 Production function 0 1 2 3 4 5 FC = $50 L Output WN - 100 180 240 280 300 L > vc = $40 uker cooler Total Cost = (fe + ve) Corowa 50 +0 = 50 so +40=90 50+ S0 = 130 Sot 120=170 50+ 160=210 so+200 = 250 o Total output increases at decreasing rate as you increase 4 + - ++ 0 30 60 90 120 150 180 210 240902 8300 gy