Question

Back to Assignment Attempts: Do No Harm: 4/5 2. Inputs and outputs Rosa's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Rosa's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Rosa signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Rosa's kitchen cannot fit more than two ovens, Rosa cannot change the number of ovens she uses in her production of pizzas in the short run. However, Rosa's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Rosa 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 inputs. Rosa'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 (Pizzas) 0

Answer 1

In short run, workers are variable inputs. and ovens are also variable inputs.

A variable input is a factor of production which can be changed in the short run, that is, varied. On the other hand, factors of production which remain fixed in the short run are called fixed inputs. Although all inputs are variable in the long run.

The Marginal product of labor (MPL) is the change in output that results from employing an added unit of labor.

Formula for marginal product= change in total product or output / change in labor units.

Labor Marginal Total Product / output Product (STP/AL) Total cost $15+$30 = $45 RO 80/1 = 80 10/= 70 50/1 - 50 $15+2(830) = $75 150 us w No 200 $15+3$30) = $105 $15+ 41$30) =1155 2011 = 20 220 $15 +5($30) - $165 230 10/1 = 40 225 It 200 Production Function output I 251 Į } ý 's Labour 1804 160 t 1404 120-1 Total cost "curve 0 Total cost 25 50 75 100 125 150 175 200 225 2504+y

Production function shows functional relation between physical output and input. It is derived by plotting output levels corresponding at each labor unit.

Rosa's total cost=fixed cost ($15) + variable cost ($30 per worker)

Thus total cost is calculated at each level in the table and plotted graphically against output levels.