Tim's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Tim's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Tim signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Tim's kitchen cannot fit more than two ovens, Tim cannot change the number of ovens he uses in his production of pizzas in the short run
Tim's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Tim's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Tim signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Tim's kitchen cannot fit more than two ovens, Tim cannot change the number of ovens he uses in his production of pizzas in the short run
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...
Related questions
Question
100%
Tim's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Tim's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Tim signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Tim's kitchen cannot fit more than two ovens, Tim cannot change the number of ovens he uses in his production of pizzas in the short run.
![Use the orange points (square symbol) to plot Tim's total cost curve on the following graph using the quantities from the preceding table.
300
270
Total Cost
240
210
180
150
120
90
60
30
30
60
90
120
150
180 210
240
270
300
QUANTITY OF OUTPUT (Pizzas)
The law of diminishing marginal product of labor is demonstrated by which of the following?
Total output increases at a decreasing rate as you increase the quantity of labor.
O Total output increases only when you increase both labor and ovens.
O Total output declines as you increase the quantity of labor.
TOTAL COST (Dollars)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b0fc2dd-17d4-428e-b883-a814b554b561%2F0eefe787-c630-4587-9904-080a57f19477%2F0ex06m_processed.png&w=3840&q=75)
Transcribed Image Text:Use the orange points (square symbol) to plot Tim's total cost curve on the following graph using the quantities from the preceding table.
300
270
Total Cost
240
210
180
150
120
90
60
30
30
60
90
120
150
180 210
240
270
300
QUANTITY OF OUTPUT (Pizzas)
The law of diminishing marginal product of labor is demonstrated by which of the following?
Total output increases at a decreasing rate as you increase the quantity of labor.
O Total output increases only when you increase both labor and ovens.
O Total output declines as you increase the quantity of labor.
TOTAL COST (Dollars)
![Tim's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Tim's very tiny kitchen has barely enough room for the two
ovens in which his workers bake the pizzas. Tim signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and
because Tim's kitchen cannot fit more than two ovens, Tim cannot change the number of ovens he uses in his production of pizzas in the short run.
However, Tim's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Tim
lets them know how many workers he needs for each day of the week. In the short run, these workers are variable v resources, and the ovens are
fixed
v resources.
Tim's daily production schedule is presented in the following table.
Fil in the blanks to complete the Marginal Product of Labor column for each worker.
Total Product
Marginal Product of Labor
Number of Workers
(Pizzas)
(Pizzas)
100
1
100
80
2
180
60
3
240
40
4
280
20
300
On the following graph, plot Tim'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).
300
270
Production Funcian
240
210
180
150
120
90
60
30
1
3
LABOR HIRED (Number of workers)
Suppose that labor is Tim's only variable cost and that he has a fixed cost of $50 per day and pays each of his workers $40 per day.
QUANTITY OF OUTPUT (Pizzas)
AAAAA](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b0fc2dd-17d4-428e-b883-a814b554b561%2F0eefe787-c630-4587-9904-080a57f19477%2Fvf3c7k_processed.png&w=3840&q=75)
Transcribed Image Text:Tim's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Tim's very tiny kitchen has barely enough room for the two
ovens in which his workers bake the pizzas. Tim signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and
because Tim's kitchen cannot fit more than two ovens, Tim cannot change the number of ovens he uses in his production of pizzas in the short run.
However, Tim's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Tim
lets them know how many workers he needs for each day of the week. In the short run, these workers are variable v resources, and the ovens are
fixed
v resources.
Tim's daily production schedule is presented in the following table.
Fil in the blanks to complete the Marginal Product of Labor column for each worker.
Total Product
Marginal Product of Labor
Number of Workers
(Pizzas)
(Pizzas)
100
1
100
80
2
180
60
3
240
40
4
280
20
300
On the following graph, plot Tim'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).
300
270
Production Funcian
240
210
180
150
120
90
60
30
1
3
LABOR HIRED (Number of workers)
Suppose that labor is Tim's only variable cost and that he has a fixed cost of $50 per day and pays each of his workers $40 per day.
QUANTITY OF OUTPUT (Pizzas)
AAAAA
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Microeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506893/9781305506893_smallCoverImage.gif)
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Economics: Private and Public Choice (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781305506725/9781305506725_smallCoverImage.gif)
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Microeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506893/9781305506893_smallCoverImage.gif)
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Economics: Private and Public Choice (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781305506725/9781305506725_smallCoverImage.gif)
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![Macroeconomics](https://www.bartleby.com/isbn_cover_images/9781337617390/9781337617390_smallCoverImage.gif)
![Microeconomics](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)