Question

Juanita's Performance Pizza is a small restaurant in Denver that sells gluten-free pizzas. Juanita's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Juanita signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Juanita's kitchen cannot fit more than three ovens, Juanita cannot change the number of ovens she uses in her production of pizzas in the short run. However, Juanita's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Juanita 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. Juanita'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 Labor (Number of workers) Output (Pizzas) Marginal Product of Labor (Pizzas) 0

Answer 1

Juanita's Performance Pizza is a small restaurant in Denver that sells gluten-free pizzas. Juanita's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Juanita signed a lease obligating her to pay the rent for the three ovens for the next year Because of this, and because Juanita's kitchen cannot fit more than three ovens, Juanita cannot change the number of ovens she uses in her production of pizzas in the short run. ovens = fixed workers = variable However, Juanita's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday. Juanita lets them know how many workers she needs for each day of the week. In the short run, these workers are variable inputs, and the ovens are fixed inputs. Juanita's daily production schedule is presented in the following table. Fw 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) Marginal Product of Labor is the difference between the output or total product when the producer implements one more additional variable factor.