total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Output Total Cost Marginal Cost Marginal Physical Product of Labor (Pizzas per day) (Pizzas per day) (Dollars per day) (Dollars per pizza) 0 240 60 140 260 420 520 580 Labor (Workers) 0 1 2 3 4 5 6 True AAAAAA False 600 960 True or False: Marginal physical product and marginal cost move in the same direction. 1,320 1,680 2,040 2,400 AAAAAA

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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2. Working with Numbers and Graphs Q2
Consider a pizza restaurant where ovens are a fixed input and workers are variable inputs. Assume labor is the only variable cost for the business. The
pizza restaurant has a fixed cost of $240 per day and pays each worker $360 per day.
Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor.
(Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in
total cost from hiring one more worker by the marginal physical product from hiring one more worker.)
Labor
(Workers)
0
1
2
3
4
5
6
0 0
True
Quantity of Output
(Pizzas per day)
0
False
60
140
260
420
520
580
Marginal Physical Product of Labor
(Pizzas per day)
^^^^^^
True or False: Marginal physical product and marginal cost move in the same direction.
Total Cost
(Dollars per day)
240
600
960
1,320
1,680
2,040
2,400
Marginal Cost
(Dollars per pizza)
A^^^^^
Transcribed Image Text:2. Working with Numbers and Graphs Q2 Consider a pizza restaurant where ovens are a fixed input and workers are variable inputs. Assume labor is the only variable cost for the business. The pizza restaurant has a fixed cost of $240 per day and pays each worker $360 per day. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Labor (Workers) 0 1 2 3 4 5 6 0 0 True Quantity of Output (Pizzas per day) 0 False 60 140 260 420 520 580 Marginal Physical Product of Labor (Pizzas per day) ^^^^^^ True or False: Marginal physical product and marginal cost move in the same direction. Total Cost (Dollars per day) 240 600 960 1,320 1,680 2,040 2,400 Marginal Cost (Dollars per pizza) A^^^^^
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