1. Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university town. Marty owns three frozen-yogurt machines. His other inputs are refrigerators, frozen-vogurt mix, cups, sprinkle toppings, and, of course, workers. He estimates that his daily production function when he varies the number of workers employed (and at the same time, of course, yogurt mix, cups, and so on) is as shown in the accompany- ing table. Quantity of labor (workers) Quantity of frozen yogurt (cups) 0 110 200 270 300 320 330 4 a. What are the fixed inputs and variable inputs in the production of cups of frozen b. Draw the total product curve. Put the quantity of labor on the horizontal axis and c. What is the marginal product of the first worker? The second worker? The third yogurt? the quantity of frozen yogurt on the vertical axis. worker VWhy does margimal product decline as the number of workers increases?
1. Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university town. Marty owns three frozen-yogurt machines. His other inputs are refrigerators, frozen-vogurt mix, cups, sprinkle toppings, and, of course, workers. He estimates that his daily production function when he varies the number of workers employed (and at the same time, of course, yogurt mix, cups, and so on) is as shown in the accompany- ing table. Quantity of labor (workers) Quantity of frozen yogurt (cups) 0 110 200 270 300 320 330 4 a. What are the fixed inputs and variable inputs in the production of cups of frozen b. Draw the total product curve. Put the quantity of labor on the horizontal axis and c. What is the marginal product of the first worker? The second worker? The third yogurt? the quantity of frozen yogurt on the vertical axis. worker VWhy does margimal product decline as the number of workers increases?
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.3P
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Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university
town. Marty owns three frozen-yogurt machines. His other inputs are refrigerators,
frozen-vogurt mix, cups, sprinkle toppings, and, of course, workers. He estimates that
his daily production function when he varies the number of workers employed (and at
the same time, of course, yogurt mix, cups, and so on) is as shown in the accompany-
ing table.
Quantity of labor
(workers)
Quantity of frozen
yogurt (cups)
0
110
200
270
300
320
330
4
a. What are the fixed inputs and variable inputs in the production of cups of frozen
b. Draw the total product curve. Put the quantity of labor on the horizontal axis and
c. What is the marginal product of the first worker? The second worker? The third
yogurt?
the quantity of frozen yogurt on the vertical axis.
worker VWhy does margimal product decline as the number of workers increases?
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