Suppose that Malika's only variable cost is labor. Assume that Malika faces daily fixed costs of $50 and pays all workers the same daily wage of $40. Use the orange points (square symbol) to plot Malika's total cost curve on the following graph using the quantities from the preceding table. TOTAL COST (Dollars) 300 270 240 210 180 150 120 90 60 30 30 0 0 30 60 90 120 150 180 210 240 270 300 QUANTITY OF OUTPUT (Pizzas) Total Cost (? True or False: The shape of the production function reflects the law of increasing marginal returns. True False 2. Inputs and outputs Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Morgantown that specializes in vegan pizzas. Malika's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Malika signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Malika is unable to change the store's number of pizza ovens in the short run. However, Malika does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Malika contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are variable pizza ovens are fixed inputs. inputs, and The following table presents Malika's daily production schedule. 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 0 100 1 100 80 2 180 60 3 240 40 4 280 20 5 300 On the following graph, plot Malika's production function using the green points (triangle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Hint: Be sure to plot the first point at (0, 0).
Suppose that Malika's only variable cost is labor. Assume that Malika faces daily fixed costs of $50 and pays all workers the same daily wage of $40. Use the orange points (square symbol) to plot Malika's total cost curve on the following graph using the quantities from the preceding table. TOTAL COST (Dollars) 300 270 240 210 180 150 120 90 60 30 30 0 0 30 60 90 120 150 180 210 240 270 300 QUANTITY OF OUTPUT (Pizzas) Total Cost (? True or False: The shape of the production function reflects the law of increasing marginal returns. True False 2. Inputs and outputs Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Morgantown that specializes in vegan pizzas. Malika's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Malika signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Malika is unable to change the store's number of pizza ovens in the short run. However, Malika does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Malika contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are variable pizza ovens are fixed inputs. inputs, and The following table presents Malika's daily production schedule. 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 0 100 1 100 80 2 180 60 3 240 40 4 280 20 5 300 On the following graph, plot Malika's production function using the green points (triangle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Hint: Be sure to plot the first point at (0, 0).
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 11RQ: What is die difference between accounting and economic profit?
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Transcribed Image Text:Suppose that Malika's only variable cost is labor. Assume that Malika faces daily fixed costs of $50 and pays all workers the same daily wage of $40.
Use the orange points (square symbol) to plot Malika's total cost curve on the following graph using the quantities from the preceding table.
TOTAL COST (Dollars)
300
270
240
210
180
150
120
90
60
30
30 0
0
30
60
90 120 150 180 210 240 270 300
QUANTITY OF OUTPUT (Pizzas)
Total Cost
(?
True or False: The shape of the production function reflects the law of increasing marginal returns.
True
False
Transcribed Image Text:2. Inputs and outputs
Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Morgantown that specializes in vegan pizzas. Malika's small shop has
barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Malika
signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Malika
is unable to change the store's number of pizza ovens in the short run.
However, Malika does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Malika contacts the staff to
communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are variable
pizza ovens are fixed
inputs.
inputs, and
The following table presents Malika's daily production schedule.
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
0
100
1
100
80
2
180
60
3
240
40
4
280
20
5
300
On the following graph, plot Malika's production function using the green points (triangle symbol).
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
Hint: Be sure to plot the first point at (0, 0).
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