2 Inputs And Outputs Musashi S Performance Pizza Is A Small Restaurant In Philadelphia That Sells Gluten Free Pizzas M 1 (34.76 KiB) Viewed 32 times
2 Inputs And Outputs Musashi S Performance Pizza Is A Small Restaurant In Philadelphia That Sells Gluten Free Pizzas M 2 (36.37 KiB) Viewed 32 times
2 Inputs And Outputs Musashi S Performance Pizza Is A Small Restaurant In Philadelphia That Sells Gluten Free Pizzas M 3 (33.71 KiB) Viewed 32 times
2. Inputs and outputs Musashi's Performance Pizza is a small restaurant in Philadelphia that sells gluten-free pizzas. Musashi's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Musashi signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Musashi's kitchen cannot fit more than two ovens, Musashi cannot change the number of ovens he uses in his production of pizzas in the short run. However, Musashi's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Musashi 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. Musashi'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. Output Marginal Product of Labor (Pizzas) Labor (Number of workers) (Pizzas) 0 1 2 3 4 5 0 70 120 160 190 200
On the following graph, plot Musashi'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). QUANTITY OF OUTPUT (Pizzas) 200 180 100 140 120 100 40 60 40 20 31 LABOR (Number of workers) 5 Production Function
Suppose that labor is Musashi's only variable cost and that he has a fixed cost of $10 per day and pays each of his workers $50 per day. Use the orange points (square symbol) to plot Musashi's total cost curve on the following graph using the quantities from the preceding table. ? TOTAL COST (Dollars) 260 240 220 200 100 (160 140 120 100 00 00 40 20 19 12 20 O True 40 40 00 100 120 140 100 100 200 QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of diminishing marginal returns. False Total Cost
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