Question

Jakes Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Jakes very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Jake signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Jakes kitchen cannot fit more than four ovens, Jake cannot change the number of ovens he uses in his production of pizzas in the short run. However, Jakes decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Jake 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 re inputs Jakes 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 Laboir Number of Workers (Pizzas) (Pizzas) 10i 130 150 160 4Note: 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) 200 180 Production Function 160 140 120 2 100 t) 80 Z 60 20 LABOR HIRED (Number of workers) Suppose that labor is Jakes only variable cost and that he has a fixed cost of $20 per day and pays each of his workers $30 per day.Use the orange points (square symbol) to plot Jakes total cost curve on the following graph using the quantities from the preceding table. 200 180 Total Cost 160 140 ㆆ 120 100 80 ー60 40 20 0 20 40 80 0 100 20 140 180 180 200 QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns True False

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

The difference between the fixed and the variable factors are the fixed factors remain fixed during the production process and the variable factor varies with the output. In this case the workers are variable inputs and the ovens are fixed input.

The marginal product of the labor is the addition made to the total product when an additional unit of the labour is employed. And this can be calculated by dividing the change in total output divided by the change in the labour employed.

MP =Delta TP/Delta L

OR by using the formula  =TP_{n}-TP_{n-1}

No of workers Output 60 160 Output 180 160 140 100 OutputThe production function and the marginal product is given above, the production function shows the relationship between the quantity produced and the number of labour employed.

The total cost is the sum of both the fixed as well as the variable cost, we should add both the variable and the fixed cost to get the total cost.

Total cost fixed cost variable cost 20 20 20 20 20 20 20 30 60 90 120 150 100 80 110 140 170 150 160 Total cost 180 160 140 1

The shape of the production function shows the law of diminishing marginal returns and not increasing marginal returns.

Ans: FALSE.

Add a comment
Know the answer?
Add Answer to:
Jake's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Jake's...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • 2. Inputs and outputs Jake's Performance Pizza is a small restaurant in New York City that...

    2. Inputs and outputs Jake's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Jake's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Jake signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Jake's kitchen cannot fit more than four ovens, Jake cannot change the number of ovens he uses in his...

  • Inputs and outputs Charles's Performance Pizza is a small restaurant in Philadelphia that sells gluten-free pizzas....

    Inputs and outputs Charles's Performance Pizza is a small restaurant in Philadelphia that sells gluten-free pizzas. Charles's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Charles signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Charles's kitchen cannot fit more than three ovens, Charles cannot change the number of ovens he uses in his production of pizzas...

  • Sam's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Sam's very...

    Sam's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Sam's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Sam signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Sam's kitchen cannot fit more than two ovens, Sam cannot change the number of ovens he uses in his production of pizzas in the...

  • 8. Inputs and outputs Clancy's Performance Pizza is a small restaurant in Houston that sells gluten-free...

    8. Inputs and outputs Clancy's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Clancy's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Clancy signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Clancy's kitchen cannot fit more than three ovens, Clancy cannot change the number of ovens he uses in his production of...

  • Hubert's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Hubert's very...

    Hubert's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Hubert's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Hubert signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Hubert's kitchen cannot fit more than three ovens, Hubert cannot change the number of ovens he uses in his production of pizzas in the...

  • Attempts: Keep the Highest: 75 2. Inputs and outputs Carlos's Performance Pizza is a small restaurant...

    Attempts: Keep the Highest: 75 2. Inputs and outputs Carlos's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Carlos's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Carlos signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Carlos's kitchen cannot fit more than four ovens, Carlos cannot change the number of...

  • 2. Inputs and outputs Amy's Performance Pizza is a small restaurant in Dallas that sells gluten-free...

    2. Inputs and outputs Amy's Performance Pizza is a small restaurant in Dallas that sells gluten-free pizzas. Amy's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Amy signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Amy's kitchen cannot fit more than three ovens, Amy cannot change the number of ovens she uses in her production of...

  • Homework (Ch 13) Bob's Performance Pizza is a small restaurant in New York City that sells...

    Homework (Ch 13) Bob's Performance Pizza is a small restaurant in New York City that sells gluten free pizzas. Bob's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Bob signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Bob's kitchen cannot fit more than four ovens, Bob cannot change the number of ovens he uses in his...

  • 2. Inputs and outputs Tim's Performance Pizza is a small restaurant in Chicago that sells gluten-free...

    2. Inputs and outputs Tim's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Tim's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Tim signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Tim's kitchen cannot fit more than two ovens, Tim cannot change the number of ovens he uses in his production of...

  • 2. Inputs and outputs Dina's Performance Pizza is a small restaurant in Dallas that sells gluten-free...

    2. Inputs and outputs Dina's Performance Pizza is a small restaurant in Dallas that sells gluten-free pizzas. Dina's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Dina signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Dina's kitchen cannot fit more than two ovens, Dina cannot change the number of ovens she uses in her production of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT