The following table shows the number of pizzas that can be produced by a large pizza parlor employing various numbers of pizza chefs. Number of Chefs Number of Pizzas per Day 1 40 2 64 3 82 4 92 5 100 6 92 Find the marginal physical product schedule of the pizza chefs. Assuming a price of $9 per pizza, find the marginal revenue product schedule. If chefs are paid $100 per day, how many chefs will this pizza parlor employ? How would your answer change if chefs’ wages rose to $125 per day? Suppose the price of pizza increases from $9 to $12. Show what happens to the derived demand curve for chefs.
The following table shows the number of pizzas that can be produced by a large pizza parlor employing various numbers of pizza chefs.
Number of Chefs Number of Pizzas per Day
1 40
2 64
3 82
4 92
5 100
6 92
- Find the marginal physical product schedule of the pizza chefs.
- Assuming a
price of $9 per pizza, find the marginal revenue product schedule. - If chefs are paid $100 per day, how many chefs will this pizza parlor employ? How would your answer change if chefs’ wages rose to $125 per day?
- Suppose the price of pizza increases from $9 to $12. Show what happens to the derived demand curve for chefs.
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