2. Working with Numbers and Graphs Q2Consider a pizza restaurant where ovens are a fixed input and workers are variable inputs. Assume labor is the only variable cost for the business. Thepizza 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 intotal cost from hiring one more worker by the marginal physical product from hiring one more worker.)Labor(Workers)01234560 0TrueQuantity of Output(Pizzas per day)0False60140260420520580Marginal 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)2406009601,3201,6802,0402,400Marginal Cost(Dollars per pizza)A^^^^^

Marginal product refers to the change in output that results from the employment of one additional…

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

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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