Answer Happy

Cho's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Cho's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Cho signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Cho's kitchen cannot fit more than two ovens, Cho cannot change the number of ovens she uses in her production of pizzas in the short run. However, Cho's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Cho 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. Cho's daily production schedule is presented in the following table.. Fill in the blanks to complete the Marginal Product column for each worker. Total Output Marginal Product (Pizzas) (Pizzas) Number of Workers 0 1 2 3 4 5 0 100 180 240 280 300 AAAAA

On the following graph, plot Cho'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). TOTAL PRODUCT (Pizzas) 300 270 240 210 180 150 120 8 10 60 30 0 0 2 QUANTITY OF LABOR (Number of workers) Production Function ? Suppose that labor is Cho's only variable cost and that she has a fixed cost of $50 per day and pays each of her workers $40 per day. Use the orange points (square symbol) to plot Cho's total cost curve on the following graph using the quantities from the preceding table.

Use the orange points (square symbol) to plot Cho's total cost curve on the following graph using the quantities from the preceding table. TOTAL COST (Dollars) 300 270 240 210 180 150 120 GO 60 30 0 0 30 60 90 120 150 100 210 240 270 300 QUANTITY OF OUTPUT (Pizzas) The law of diminishing returns is demonstrated by which of the following? D Total Cost Total output increases at a decreasing rate as you increase the quantity of labor. Total output declines as you increase the quantity of labor. Total output increases only when you increase both labor and ovens.