Juanita's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Juanita's very tiny ki

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Juanita S Performance Pizza Is A Small Restaurant In San Francisco That Sells Gluten Free Pizzas Juanita S Very Tiny Ki 1 (91.4 KiB) Viewed 26 times

Juanita's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Juanita's very tiny kitchen has barely enough room for the four ovens in which her workers bake the pizzas. Juanita signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this, and because Juanita's kitchen cannot fit more than four ovens, Juanita cannot change the number of ovens she uses in her production of pizzas in the short run. However, Juanita's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Juanita lets them know how many workers she needs for each day of the week. In the short run, these workers are inputs, and the ovens are inputs. Juanita's daily production schedule is presented in the following table. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Labor (Number of workers) Output (Pizzas) Marginal Product of Labor (Pizzas) 0 0 1 80 2 150 3 200 4 220 5 230 On the following graph, plot Juanita'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). ? 250 225 Production Function 200 175 QUANTITY OF OUTPUT (Pizzas) 25 0 0 1 5 LABOR (Number of workers)

Suppose that laboris Juanita's only variable cost and that she has a fixed cost of $15 per day and pays each of her workers $30 per day. Use the orange points (square symbol) to plot Juanita's total cost curve on the following graph using the quantities from the preceding table. ? 200 180 Total Cost 160 140 120 TOTAL COST (Dollars) 100 80 60 40 20 0 0 25 225 250 50 75 100 125 150 175 200 QUANTITY OF OUTPUT (Pizzas) The law of diminishing marginal product of labor is demonstrated by which of the following? Total output increases only when you increase both labor and ovens. Total output increases at a decreasing rate as you increase the quantity of labor. Total output declines as you increase the quantity of labor.