Charles's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Charles's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Charles signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Charles's kitchen cannot fit more than two ovens, Charles cannot change the number of ovens he uses in his production of pizzas in the short run. However, Charles's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Charles lets them know how many workers he needs for each day of the week. In the short run, these workers are variable v inputs, and the ovens are fixed v inputs. Charles's daily production schedule is presented in the following table.
Charles's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Charles's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Charles signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Charles's kitchen cannot fit more than two ovens, Charles cannot change the number of ovens he uses in his production of pizzas in the short run. However, Charles's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Charles lets them know how many workers he needs for each day of the week. In the short run, these workers are variable v inputs, and the ovens are fixed v inputs. Charles's daily production schedule is presented in the following table.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.6IP
Related questions
Question
![On the fallowing graph, plat Charies's production function using the green paints (triangle symbol).
Note: Plot your paints in the arder in which you would ike them connected. Line segments will connect the points automatically.
Hint: Be sure to plot the frst point at (0, 0).
300
Produdtion Function
240
210
180
150
120
LABOR (Number of workers)
Suppose that labor is Charles's only variable cost and that he has a fixed cost of $50 per day and pays each of his workers $40 per day.
Use the orange paints (square symbal) to plat Charies's total cost curve an the following graph using the quantities from the preceding table.
270
Total Cost
240
210
150
120
30
30 00 20 120 150 1O 210 240 270 300
QUANTITY OF OUTPUT (Piznas)
The law of diminishing marginal product of labor is demonstrated by which of the following?
O Total output increases only when you increase both labor and ovens.
O Total output increases at a decreasing rate as you increase the quantity of labor.
O Total output declines as you increase the quantity of labor.
(a indino JO ALLINVNO
TOTAL COST (Dolan)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa00ebaa-23b9-4b28-a7ce-1aeaaf3b9d34%2Fa1077931-f46d-4c79-9654-0c1811d30d5c%2Fzb0aldm_processed.png&w=3840&q=75)
Transcribed Image Text:On the fallowing graph, plat Charies's production function using the green paints (triangle symbol).
Note: Plot your paints in the arder in which you would ike them connected. Line segments will connect the points automatically.
Hint: Be sure to plot the frst point at (0, 0).
300
Produdtion Function
240
210
180
150
120
LABOR (Number of workers)
Suppose that labor is Charles's only variable cost and that he has a fixed cost of $50 per day and pays each of his workers $40 per day.
Use the orange paints (square symbal) to plat Charies's total cost curve an the following graph using the quantities from the preceding table.
270
Total Cost
240
210
150
120
30
30 00 20 120 150 1O 210 240 270 300
QUANTITY OF OUTPUT (Piznas)
The law of diminishing marginal product of labor is demonstrated by which of the following?
O Total output increases only when you increase both labor and ovens.
O Total output increases at a decreasing rate as you increase the quantity of labor.
O Total output declines as you increase the quantity of labor.
(a indino JO ALLINVNO
TOTAL COST (Dolan)
![Charles's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Charles's very tiny kitchen has barely enough room for the
two ovens in which his workers bake the pizzas. Charles signed a lease obligating him to pay the rent for the two ovens for the next year. Because of
this, and because Charles's kitchen cannot fit more than two ovens, Charles cannot change the number of ovens he uses in his production of pizzas in
the short run.
However, Charles's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday,
Charles lets them know how many workers he needs for each day of the week. In the short run, these workers are variable v inputs, and the
ovens are fixed
inputs.
Charles'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
Output
Marginal Product of Labor
(Number of workers) (Pizzas)
(Pizzas)
1
100
2
180
3
240
4
280
5
300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa00ebaa-23b9-4b28-a7ce-1aeaaf3b9d34%2Fa1077931-f46d-4c79-9654-0c1811d30d5c%2Fdzlx0hs_processed.png&w=3840&q=75)
Transcribed Image Text:Charles's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Charles's very tiny kitchen has barely enough room for the
two ovens in which his workers bake the pizzas. Charles signed a lease obligating him to pay the rent for the two ovens for the next year. Because of
this, and because Charles's kitchen cannot fit more than two ovens, Charles cannot change the number of ovens he uses in his production of pizzas in
the short run.
However, Charles's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday,
Charles lets them know how many workers he needs for each day of the week. In the short run, these workers are variable v inputs, and the
ovens are fixed
inputs.
Charles'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
Output
Marginal Product of Labor
(Number of workers) (Pizzas)
(Pizzas)
1
100
2
180
3
240
4
280
5
300
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