2. Inputs and outputsMalika's Pizzas is a takeout-only pizza parlor servicing the college campus of Santa Barbara 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 inputs, and pizza ovens are inputs. The following table presents Malika's daily production schedule.Fill in the blanks to complete the Marginal Product of Labor column for each worker.LaborOutputMarginal Product of Labor(Number of workers)(Pizzas)(Pizzas)00 1100 2180 3240 4280 5300 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). Production Function0123453002702402101801501209060300QUANTITY OF OUTPUT (Pizzas)LABOR (Number of workers) 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 Cost03060901201501802102402703003002702402101801501209060300TOTAL COST (Dollars)QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns.True False **Educational Website Content: Production Function and Cost Analysis**---**Plotting Malika's Production Function**To understand Malika's production function, you need to plot it on the graph using the green points (triangle symbol). Follow these steps:- **Note**: Plot your points in the order you would like them connected. Line segments will automatically connect the points.- **Hint**: Begin by plotting the first point at the origin (0, 0).**Graph Details:**- **X-Axis**: Represents Labor (Number of Workers), ranging from 0 to 5.- **Y-Axis**: Represents Quantity of Output (Pizzas), ranging from 0 to 300.- **Label**: The graph is titled "Production Function."A green triangle marks the starting point. As you add additional points, they will connect to form Malika's production function curve.**Cost Analysis**Suppose Malika's only variable cost is labor. Her daily fixed costs are $50, and she pays each worker a daily wage of $40.**Plotting Malika's Total Cost Curve**Next, use the orange points (square symbol) to plot Malika's total cost curve. Use the quantities from the preceding table for accuracy. Follow similar plotting instructions: arrange your points in sequence to form a line that represents the total cost curve. This exercise will help you visualize the relationship between labor, production output, and overall costs, aiding in decision-making and efficiency improvements for Malika's business. **CENGAGE | MINDTAP****HW (Ch 13)**---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.**Graph Description:**The graph is titled "Total Cost" and displays a grid where the x-axis represents the "QUANTITY OF OUTPUT (Pizzas)" ranging from 0 to 300. The y-axis represents "TOTAL COST (Dollars)" ranging from 0 to 300.An orange square symbol is provided in the legend on the right as an indicator to plot the Total Cost points on the graph.**Question:**True or False: The shape of the production function reflects the law of increasing marginal returns.

Production function shows the relationship between the inputs used and the output produced. Marginal product of labor shows the change in total output with an additional unit of labor. Total Cost is the sum of total fixed cost and the total variable cost. In the short run , The store employees are variable inputs and the pizza ovens are fixed inputs.The below image shows the MPL of labor : - The below image shows the formula page : - The below graph shows the production function: - We have Fixed cost = 50 Variable cost = 40 per worker So, TC = 50 + 40L Where , L = no. of workers The below graph shows the Total Cost curve : - The production Function is increasing but at a decreasing rate and also the MPL is decreasing Hence, The shape of the Production Function shows the decreasing marginal returns Hence, The given statement is false.

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Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Santa Barbara 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 inputs, and pizza ovens are inputs. 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 Output Marginal Product of Labor (Number of workers) (Pizzas) (Pizzas) 0 0 1 100 2 180 3 240 4 280 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). Production Function0123453002702402101801501209060300QUANTITY OF OUTPUT (Pizzas)LABOR (Number of workers) 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 Cost03060901201501802102402703003002702402101801501209060300TOTAL COST (Dollars)QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns. True False

Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Santa Barbara 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 inputs, and pizza ovens are inputs. 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 Output Marginal Product of Labor (Number of workers) (Pizzas) (Pizzas) 0 0 1 100 2 180 3 240 4 280 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). Production Function0123453002702402101801501209060300QUANTITY OF OUTPUT (Pizzas)LABOR (Number of workers) 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 Cost03060901201501802102402703003002702402101801501209060300TOTAL COST (Dollars)QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns. True False

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Inputs and outputs

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 inputs, and pizza ovens are inputs.

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	Output	Marginal Product of Labor
(Number of workers)	(Pizzas)	(Pizzas)
0	0

1	100

2	180

3	240

4	280

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).

Production Function0123453002702402101801501209060300QUANTITY OF OUTPUT (Pizzas)LABOR (Number of workers)

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 Cost03060901201501802102402703003002702402101801501209060300TOTAL COST (Dollars)QUANTITY OF OUTPUT (Pizzas)

True or False: The shape of the production function reflects the law of increasing marginal returns.

True

False

**Educational Website Content: Production Function and Cost Analysis**

---

**Plotting Malika's Production Function**

To understand Malika's production function, you need to plot it on the graph using the green points (triangle symbol). Follow these steps:

- **Note**: Plot your points in the order you would like them connected. Line segments will automatically connect the points.

- **Hint**: Begin by plotting the first point at the origin (0, 0).

**Graph Details:**

- **X-Axis**: Represents Labor (Number of Workers), ranging from 0 to 5.
- **Y-Axis**: Represents Quantity of Output (Pizzas), ranging from 0 to 300.
- **Label**: The graph is titled "Production Function."

A green triangle marks the starting point. As you add additional points, they will connect to form Malika's production function curve.

**Cost Analysis**

Suppose Malika's only variable cost is labor. Her daily fixed costs are $50, and she pays each worker a daily wage of $40.

**Plotting Malika's Total Cost Curve**

Next, use the orange points (square symbol) to plot Malika's total cost curve. Use the quantities from the preceding table for accuracy. Follow similar plotting instructions: arrange your points in sequence to form a line that represents the total cost curve.

This exercise will help you visualize the relationship between labor, production output, and overall costs, aiding in decision-making and efficiency improvements for Malika's business.

**CENGAGE | MINDTAP**

**HW (Ch 13)**

---

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.

**Graph Description:**

The graph is titled "Total Cost" and displays a grid where the x-axis represents the "QUANTITY OF OUTPUT (Pizzas)" ranging from 0 to 300. The y-axis represents "TOTAL COST (Dollars)" ranging from 0 to 300.

An orange square symbol is provided in the legend on the right as an indicator to plot the Total Cost points on the graph.

**Question:**

True or False: The shape of the production function reflects the law of increasing marginal returns.

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