Deborah\'s Performance Pizza is a small restaurant in San Francisco that sells g

Question

Deborah's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Deborah's very tiny kitchen has barely enough roon for the four ovens in which her workers bake the pizzas. Deborah signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this, and because Deborah's kitchen cannot fit more than four ovens, Deborah cannot change the number o ovens she uses in her production of pizzas in the short run. However, Deborah's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Deborah lets them know how many workers she needs for each day of the week. n the short run, these workers are- -inputs, and the ovens are inputs Deborah's daily production schedule is presented in the following table variable

Explanation / Answer

Ans: In both the above cases, workers are Variable inputs as its number are subject to be changed whereas oven are fixed inputs as there are already 4 oven and that cannot be raised.

Number of workers MPL(change in output/change in number of workers)

0 0

1 60

2 40

3 30

4 20

5 10

The law of diminishing marginal product of labor is demonstrated by : Total output output increases at a decreasing rate as you increase the quantity of labor.

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