barely enough room for customers to stand and wait, let alone the three paza avans necessary to keep up with the hungry student customers. Malika signed a lease renting both the three 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, Maika 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 inputs, and pizza ovens are inputs. The following table presents Malka's dally production schedule. Fill in the banks to complete the Marginal Product of Labor column for each worker. Labor Output Marginal Product of Labor (Number of workers) (Pizza) (Plazas) QUANTITY OF OUTPUT) 243 210 100 150 On the following graph, plot Malika's production function using the green points (triangle symbal). 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). 120 0 1 3 5 270 100 180 240 300 LABOR (Number of workers) 0000 4 Production Function 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 -0 Total Cost
barely enough room for customers to stand and wait, let alone the three paza avans necessary to keep up with the hungry student customers. Malika signed a lease renting both the three 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, Maika 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 inputs, and pizza ovens are inputs. The following table presents Malka's dally production schedule. Fill in the banks to complete the Marginal Product of Labor column for each worker. Labor Output Marginal Product of Labor (Number of workers) (Pizza) (Plazas) QUANTITY OF OUTPUT) 243 210 100 150 On the following graph, plot Malika's production function using the green points (triangle symbal). 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). 120 0 1 3 5 270 100 180 240 300 LABOR (Number of workers) 0000 4 Production Function 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 -0 Total Cost
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Tallahassee that specializes in vegan pizzas. Malika's small shop has
barely enough room for customers to stand and wait, let alone the three pizza ovens necessary to keep up with the hungry student customers. Malika
signed a lease renting both the three 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 ovans in the short run.
However, Maika 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
✓inputs, and
pizza ovens are
inputs.
The following table presents Mallika's daily production schedule.
Fill in the blanks to complete the Marginal Product of Labor column for each worker.
Output Marginal Product of Labor
Labor
(Number of workers) (Pizzas) (Pizzas)
300
373
88 ****
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).
343
100
150
123
30
200
270
210
100
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.
1:50
0
Use the orange points (square symbol) to plot Malika's total cost curve on the following graph using the quantities from the preceding table.
(?)
00
1
2
3
4
5
30
0
100
180
0
240
280
300
LABOR (Number of workers)
Production Function
30 60 90 120 159 189 2102
100 210 240 270 300
QUANTITY OF OUTPUT (P)
-0
Total Cast
The law of diminishing marginal product of labor is demonstrated by which of the following?
O Total output increases at a decreasing rate as you increase the quantity of labor.
O Total output increases only when you increase both labor and ovens
O Total output declines as you increase the quantity of labor.
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