Shen's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Shen's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Shen signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Shen's kitchen cannot fit more than two ovens, Shen cannot change the number of ovens he uses in his production of pizzas in the short run. However, Shen's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Shen lets them know how many workers he needs for each day of the week. In the short run, these workers are inputs, and the ovens are inputs. Shen'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 70 2 120 3 160 4 190 5 200

Shen's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Shen's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Shen signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Shen's kitchen cannot fit more than two ovens, Shen cannot change the number of ovens he uses in his production of pizzas in the short run. However, Shen's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Shen lets them know how many workers he needs for each day of the week. In the short run, these workers are inputs, and the ovens are inputs. Shen'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 70 2 120 3 160 4 190 5 200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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