Question

Brian's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Brian's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Brian signed a lease obligation him to pay the rent for the two ovens for the next year. Because of this, and because Brian's kitchen cannot fit more than two ovens, Brian cannot change the number of ovens he uses in his production of pizzas in the short run. However, Brian's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Brian lets them know how many workers he needs for each day of the week. In the short run, these workers are______inputs, and the ovens are______inputs. Brian's daily production schedule is presented. To complete the Marginal Product of Labor column for each worker. Number of Workers Output Marginal Product of Labor (Pizzas) (Pizzas) 0 0 1 50 2 90 3 120 4 140 5 150 The shape of the production function reflects the law of diminishing marginal returns. A. True B. False

Answer 1

Answer:

Check the explanation

Explanation:

In the short run these workers are variable inputs and the ovens are fixed inputs.

Number of workers Output Marginal product of labor

0                                       0  

1                                      50                      50

2                                      90                      40

3                                      120                      30

4                                      140                      20

5                                      150                      10

The plotted graph can be seen in the first attached image.

FC=30 and pay each worker = $30

Number of workers Output FC VC TC

0                                       0 30 0 30

1                                      50 30 30 60

2                                      90 30 60 90

3                                      120 30 90 120

4                                        140 30 120 150

5                                        150 30 150 180

The plotted graph can be seen in the second attached image.