Maria produces pizzas using labor, an oven, and flour. When Maria uses 4 workers she can produce 100 pizzas per day. When she uses 8 workers, she can produce 175 pizzas per day. True or false: Maria's production function displays decreasing returns to scale.
True
or
False
Answer : The statement is true .As it predict that the production function shows a decreasing return to scale because as input increase to double but production has been not increase to double.This shows that there is an decreasing return to scale in the production function.
Maria produces pizzas using labor, an oven, and flour. When Maria uses 4 workers she can...
Irma’s business produces ceramic bowls using labor, clay, and a kiln. She produces bowls using a fixed proportion of labor and clay, but regardless of how many bowls she produces, she uses only one kiln. She can manufacture 15 bowls a day with one worker, and 25 with two workers. Does her production process illustrate decreasing returns to scale, or a diminishing marginal product of labor? Why?
3. Dan needs to hire workers and use ovens to cook and serve pizzas. The number of ovens Dan owns is fixed to be 4. The short-run production function is F(L) = 407L, where L is the total number of hours of labor input per day. Suppose the cost of labor is $10 per hour and the cost of each oven is $40 per day. (a) (5 points) What is the total number of hours of labor needed to produce...
3. Dan needs to hire workers and use ovens to cook and serve pizzas. The number of ovens Dan owns is fixed to be 4. The short-run production function is F(L) = 40VL, where Lis the total number of hours of labor input per day. Suppose the cost of labor is $10 per hour and the cost of each oven is $40 per day. (a) (5 points) What is the total number of hours of labor needed to produce pizzas!...
4. Dan needs to hire workers and use oven hours to cook and serve para. The production function is F(LK) 60VLVK, where Lis the hour of labor input and K is the hour of oven usage. Note that the marginal product of labor is 30VK/VL and the marginal product of capital is 30VL/VK. Suppose the cost of labor is given to be $10 per hour and the cost of capital is $10 per hour. In the long run, all inputs...
2. Inputs and outputs Antonio's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Antonio's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Antonio signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Antonio's kitchen cannot fit more than three ovens, Antonio cannot change the number of ovens he uses in his production of...
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...
In a widget factory, the producer is able to produce 40 widgets per day when she hires two workers. The producer is able to produce 70 widgets per day when she hires three workers. If diminishing marginal product occurs with the fourth worker then the producer is able to produce less than 100 widgets per day when she hires four workers. True False In the short run total costs include both fixed costs and variable costs. Rent paid on the...
Jake's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Jake's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Jake signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Jake's kitchen cannot fit more than four ovens, Jake cannot change the number of ovens he uses in his production of pizzas in...
Inputs and outputs Charles's Performance Pizza is a small restaurant in Philadelphia that sells gluten-free pizzas. Charles's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Charles signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Charles's kitchen cannot fit more than three ovens, Charles cannot change the number of ovens he uses in his production of pizzas...
2. Inputs and outputs Poornima's Performance Pizza is a small restaurant in Denver that sells gluten-free pizzas. Poornima's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Poornima signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Poornima's kitchen cannot fit more than two ovens, Poornima cannot change the number of ovens she uses in her production of pizzas...