Aneesha's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Aneesha's small shop has barely enough room for customers to stand and wait, let alone the three pizza ovens necessary to keep up with the hungry student customers. Aneesha signed a lease renting both the three ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Aneesha is unable to change the store's number of pizza ovens in the short run. However, Aneesha does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Aneesha 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/fixed) inputs, and pizza ovens are _____(fixed/variable) inputs. The following table presents Aneesha's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each
Aneesha's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Aneesha's small shop has barely enough room for customers to stand and wait, let alone the three pizza ovens necessary to keep up with the hungry student customers. Aneesha signed a lease renting both the three ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Aneesha is unable to change the store's number of pizza ovens in the short run. However, Aneesha does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Aneesha 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/fixed) inputs, and pizza ovens are _____(fixed/variable) inputs. The following table presents Aneesha's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each
Chapter13: Factor Markets: With Emphasis On The Labor Market
Section13.1: Factor Market
Problem 2ST
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Aneesha's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Aneesha's small shop has barely enough room for customers to stand and wait, let alone the three pizza ovens necessary to keep up with the hungry student customers. Aneesha signed a lease renting both the three ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Aneesha is unable to change the store's number of pizza ovens in the short run.
However, Aneesha does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Aneesha 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/fixed) inputs, and pizza ovens are _____(fixed/variable) inputs.
The following table presents Aneesha's daily production schedule.
Fill in the blanks to complete the Marginal Product of Labor column for each worker.
(Chart in the image)
True or False: The shape of the production function reflects the law of diminishing marginal returns.
A. True
B. False
Transcribed Image Text:Fill in the blanks to complete the Marginal Product of Labor column for each worker.
Labor
(Number of workers)
1
Output Marginal Product of Labor
(Pizzas)
0
70
120
160
190
200
Expert Solution
Step 1: Define short run
Fixed factors are those factors which cannot be changed in the short run while variable factors can be changed in the short run. In the long run all the factors of production are variable as it represents a period where supply can be perfectly adjusted.
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