Suppose that labor is Becky's only variable cost and that she has a fixed cost of $30 per day and pays each of her workers $30 per day.Use the orange points (square symbol) to plot Becky's total cost curve on the following graph using the quantities from the preceding table.200180Total Cost16014012010080604020406080100120140160180200QUANTITY OF OUTPUT (Pizzas)True or False: The shape of the production function reflects the law of diminishing marginal returns.TrueFalseTOTAL COST (Dollars)20 2. Inputs and outputsBecky's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Becky's very tiny kitchen has barely enough room for the fourovens in which her workers bake the pizzas. Becky signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this,and because Becky's kitchen cannot fit more than four ovens, Becky cannot change the number of ovens she uses in her production of pizzas in theshort run.However, Becky's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday,Becky lets them know how many workers she needs for each day of the week. In the short run, these workers are variableinputs, and the ovensarefixedinputs.Becky'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.LaborOutputMarginal Product of Labor(Number of workers)(Pizzas)(Pizzas)15029031204140150

The factor of production (inputs) can be either fixed or variable in the short run. Inputs are…

Suppose that labor is Becky's only variable cost and that she has a fixed cost of $30 per day and pays each of her workers $30 per day. Use the orange points (square symbol) to plot Becky's total cost curve on the following graph using the quantities from the preceding table. 200 180 Total Cost 160 140 120 (Dollars)

Suppose that labor is Becky's only variable cost and that she has a fixed cost of $30 per day and pays each of her workers $30 per day. Use the orange points (square symbol) to plot Becky's total cost curve on the following graph using the quantities from the preceding table. 200 180 Total Cost 160 140 120 (Dollars)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...

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