Suppose that Malika's only variable cost is labor. Assume that Malika faces daily fixed costs of $20 and pays all workers the same daily wage of $30.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 COST (Dollars)200180160140120100806040200020True40False60 80 100 120 140 160 180 200QUANTITY OF OUTPUT (Pizzas)True or False: The shape of the production function reflects the law of increasing marginal returns.Total Cost Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Tallahassee that specializes in vegan pizzas. Malika's small shop hasbarely enough room for customers to stand and wait, let alone the four pizza ovens necessary to keep up with the hungry student customers. Malikasigned a lease renting both the four ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Malikais 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 tocommunicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are variable inputs, andpizza ovens are fixed 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.Output Marginal Product of Labor(Pizzas) (Pizzas)Labor(Number of workers)QUANTITY OF OUTPUT (Pizzas)200180On 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).1601401201008060402000011234506010013015016023LABOR (Number of workers)A60403020105Production Function(?)

Total cost is equal to the sum of total variable cost and total fixed cost. Total variable cost is…

Suppose that Malika's only variable cost is labor. Assume that Malika faces daily fixed costs of $20 and pays all workers the same daily wage of $30. 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 COST (Dollars) 200 180 160 140 120 100 80 60 40 20 0 0 20 True 40 False 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. Total Cost

Suppose that Malika's only variable cost is labor. Assume that Malika faces daily fixed costs of $20 and pays all workers the same daily wage of $30. 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 COST (Dollars) 200 180 160 140 120 100 80 60 40 20 0 0 20 True 40 False 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. Total Cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $4.00 in ingredients per pizza, $0.40 in electricity per pizza, $3,000 in restaurant rent per month, and $350 in insurance per month. Assume the pizza parlor produces 4,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $. (Enter your response as an integer.)
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Cost curves in the long run differ from cost curves in the short run. This is true right.
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