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Business, 13.11.2021 14:40 gautemalaismylife

Brian's Performance Pizza is a small restaurant in Houston that sells gluten-free pizzas. Brian's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Brian signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Brian's kitchen cannot fit more than three ovens, Brian cannot change the number of ovens he uses in his production of pizzas in the short run. However, Brian's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Brian 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 are inputs. Brian'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. Labor Output Marginal Product of Labor (Number of workers) (Pizzas) (Pizzas) 0 0 1 100 2 180 3 240 4 280 5 300 On the following graph, plot Brian'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). Production Function 0 1 2 3 4 5 300 270 240 210 180 150 120 90 60 30 0 QUANTITY OF OUTPUT (Pizzas) LABOR (Number of workers) Suppose that labor is Brian's only variable cost and that he has a fixed cost of $50 per day and pays each of his workers $40 per day. Use the orange points (square symbol) to plot Brian's total cost curve on the following graph using the quantities from the preceding table. Total Cost 0 30 60 90 120 150 180 210 240 270 300 300 270 240 210 180 150 120 90 60 30 0 TOTAL COST (Dollars) QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of increasing marginal returns. True False Continue without saving

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