Nia's Pizzas is a takeout-only pizza parlor servicing the college campus of Tallahassee that specializes in vegan pizzas. Nia's small shop has barelyenough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Nia signed alease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Nia is unable tochange the store's number of pizza ovens in the short run.However, Nia does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Nia contacts the staff tocommunicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees areinputs, andpizza ovens areinputs.The following table presents Nia's daily production schedule.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)07234in50100180240280300fixedvariable On the following graph, plot Nia'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)300270TOTAL COST (Dollars)2402101801501209060300300Suppose that Nia's only variable cost is labor. Assume that Nia faces daily fixed costs of $50 and pays all workers the same daily wage of $40.270Use the orange points (square symbol) to plot Nia's total cost curve on the following graph using the quantities from the preceding table.2402101509060030DDLABOR (Number of workers)O TrueO False60 90QUANTITY OF OUTPUT (Pizzas)150Production Function210 240 270 300Ⓡ-O-Total CostTrue or False: The shape of the production function reflects the law of increasing marginal returns.

But here, the marginal product of labor is decreasing as number of workers increases. It means…

However, Nia does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Nia contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following table presents Nia's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Labor Output Marginal Product of Labor (Pizzas) (Number of workers) (Pizzas) 0 1 2 3 0 100 180 240 300 AAAA fixed variable

However, Nia does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Nia contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following table presents Nia's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Labor Output Marginal Product of Labor (Pizzas) (Number of workers) (Pizzas) 0 1 2 3 0 100 180 240 300 AAAA fixed variable

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 2E

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Iyana's Pizzas is a takeout-only pizza parlor servicing the college campus of Tallahassee that specializes in vegan pizzas. Iyana's small shop has barely enough room for customers to stand and wait, let alone the four pizza ovens necessary to keep up with the hungry student customers. Iyana signed a lease renting both the four ovens and the storefront for the next year. Due to the terms of the lease and the building’s size constraint, Iyana is unable to change the store’s number of pizza ovens in the short run. However, Iyana does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Iyana contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are (variable or fixed) inputs, and pizza ovens are (variable or fixed) inputs. The following table presents Iyana's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each…
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In the island nation of Autarka, cardboard boxes are manufactured by four rms: Andrew'sIndustries, Brett's Boxes, Carla's Cardboard, and Delia's Durables. In Autarka, cardboard boxes are sold in bundles of 100. At present, the market price for a bundle of boxes is $30. The technology for manufacturing cardboard boxes is readily available and common to all manufacturers. The cost of plant and machinery for a rm in the box manufacturing business is $7,000,000 per year. The labour, material, and energy cost of producing abundle of 100 boxes is $20. A market study indicates that demand for cardboard boxes is given by the function,P= 40 - Q/500,000 ;where P represents the price of a bundle of 100 boxes, and Qis the total number of bundles of boxes sold each year. Using the information provided in the scenario, derive a total cost function fora typical cardboard box manufacturer. Use QA to denote the quantity produced by thetypical firm.
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