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2. Inputs and outputs Anunio\'s Performance Pizza is asmall restaurant in Housto

ID: 1201967 • Letter: 2

Question

2. Inputs and outputs Anunio's Performance Pizza is asmall restaurant in Houston that salls luten-free pizzas. Anconio's very tiny kitchen has barely enough ream for the four aves in which his warkers bake the pizzas. Antonio signedalease obligating him to pay the rent for the four ovens for the nest year, Because of this, and becaAntonio's Iknchen cannot fit more than four ovens Antonio cannot change the number of ovens he uses in his production of pizzas in However, Antonio's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Antonio les them know how many workers he needs for each day ofth-week. In the shot run, these worker, re- -mpts and th*ovens inputs Antono's daily production schedule is presented in the folewing table Fit in the blacis to cemplee the Marginal Produce of Labor colsmn for esch werker Output Marginal Product of Labor Number of Workers Pizzes)(Pizza 109 2180 200 305

Explanation / Answer

In short run the number of labors are variable cost input and the ovens are fixed cost input.

Marginal Product of labor=Output/no of labors

For 1 worker MPL=100/1=100

For 2 worker MPL=180/2=90

For 3 worker MPL=240/3=80

For 4 worker MPL=280/4=70

For 5 worker MPL=300/5=60

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