Suppose that labor is Valerie's only variable cost and that she has a fixed cost of $20 per day and pays each of her workers $30 per day.Use the orange points (square symbol) to plot Valerie's total cost curve on the following graph using the quantities from the preceding table.200180Total Cost16014012010080604040 6080100120140160180200QUANTITY OF OUTPUT (Pizzas)True or False: The shape of the production function reflects the law of increasing marginal returns.O TrueO False2020TOTAL COST (Dollars) 2. Inputs and outputsValerie's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Valerie's very tiny kitchen has barely enough room for thethree ovens in which her workers bake the pizzas. Valerie signed a lease obligating her to pay the rent for the three ovens for the next year. Becauseof this, and because Valerie's kitchen cannot fit more than three ovens, Valerie cannot change the number of ovens she uses in her production ofpizzas in the short run.However, Valerie's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday,Valerie lets them know how many workers she needs for each day of the week. In the short run, these workers arev inputs, and theovens areinputs.Valerie'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.Output(Pizzas)LaborMarginal Product of Labor(Pizzas)(Number of workers)6021001304150160On the following graph, plot Valerie'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).200180Production Function160140120100LABOR (Number of workers)MAA1.QUANTITY OF OUTPUT (Pizzas)

Valerie's performance pizza is a small restaurant that sells pizzas. He owns three ovens in which…

Suppose that labor is Valerie's önly Varlable cost and that SHe Has Use the orange points (square symbol) to plot Valerie's total cost curve on the following graph using the quantities from the preceding table 200 180 Total Cost 160 140 120 100 80 60 40 20 20 40 60 80 100 120 140 160 180 200 QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns. O True O False TOTAL COST (Dollars) O O

Suppose that labor is Valerie's önly Varlable cost and that SHe Has Use the orange points (square symbol) to plot Valerie's total cost curve on the following graph using the quantities from the preceding table 200 180 Total Cost 160 140 120 100 80 60 40 20 20 40 60 80 100 120 140 160 180 200 QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns. O True O False TOTAL COST (Dollars) O O

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 38CTQ: Do you think that the taxicab industry in large cities would be subject to significant economies of...

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