Question

The table below shows the quantity of workers and total output for a local pizza parlor. Answer the following questions based on this table:

Quantity of workers | Total Out put |

0 | 0 |

1 | 3 |

2 | |

3 | 17 |

4 | 22 |

5 | 26 |

6 | 24 |

a. When the owner hires 4 workers, the average product of labor is nothing pizzas. (Enter your response rounded to two decimal places

b the marginal product of the fifth worker is nothing pizzas. (Enter your response as a whole number

c If the marginal product of the second worker is 6, then the total number of pizzas produced when 2 workers are hired is nothing pizzas. (Enter your response as a whole number.)

d. Assuming the marginal product of the second worker is 6, the law of diminishing marginal returns set in with the

A third worker hired.

B sixth worker hired

C fifth worker hired

D fourth worker hired

Answer #1

Quantity of workers | Total Output | MP | AP |

0 | 0 | ||

1 | 3 | 3 | 3 |

2 | 9 | 6 | 4.5 |

3 | 17 | 8 | 5.67 |

4 | 22 | 5 | 5.5 |

5 | 26 | 4 | 5.2 |

6 | 24 | -2 | 4 |

MP (nth unit) = Output (n units) - Output ((n-1) units)

AP = Q/L

a. When the owner hires 4 workers, the average product of labor is 5.5 pizzas.

b the marginal product of the fifth worker is 4 pizzas.

c If the marginal product of the second worker is 6, then the total number of pizzas produced when 2 workers are hired is 9 pizzas.

d. Assuming the marginal product of the second worker is 6, the law of diminishing marginal returns set in with the

D fourth worker hired (MP starts decreasing)

When Brenda’s Pastry employs three workers, total output is 6
dozen pastries per hour. After Brenda hires a fourth
worker, the number of pastries produced increases to 7 dozen per
hour. Which of the following is true about the marginal
product (MP) and average product (AP) of labor for Brenda’s
Pastry?
Group of answer choices
Because the MP of the fourth worker is greater than the AP of
three workers, AP must fall when the fourth worker is hired
Because the MP...

Kaiser’s Ice Cream Parlor hires workers to produce smoothies.
The market for smoothies is
perfectly competitive, and the price of a smoothie is RM4. The
labor market is competitive,
and the wage rate is RM40 a day. The table shows the workers total
product schedule.
Number of
workers
Quantity produced
(smoothies per day)
1 7
2 21
3 33
4 43
5 51
6 55
a. Calculate the marginal product and marginal revenue product for
each worker from the
table...

Number of Workers
Number of Pizzas
1
20
2
40
3
65
4
80
5
90
6
95
7
90
For questions a and b refer to the above
table:
The table refers to the number of quantity of pizzas
that can be produced in a day what is the marginal product of the
4th worker?
With which worker will diminishing returns set
in?

Graph the following table.
Number of Workers
Total Output
0
0
1
20
2
60
3
150
4
260
5
350
6
420
7
455
8
420
9
375
10
300
A. What is the marginal product and average product at each
level of production?
B. Graph marginal product and average product.
C. Label the areas on the graph of increasing marginal
productivity, diminishing marginal productivity, and diminishing
absolute productivity.

2. Inputs and outputs
Juanita's Performance Pizza is a small restaurant in Miami that
sells gluten-free pizzas. Juanita's very tiny kitchen has barely
enough room for the four ovens in which her workers bake the
pizzas. Juanita signed a lease obligating her to pay the rent for
the four ovens for the next year. Because of this, and because
Juanita's kitchen cannot fit more than four ovens, Juanita cannot
change the number of ovens she uses in her production of...

2. Inputs and outputs
Deborah's Performance Pizza is a small restaurant in Denver that
sells gluten-free pizzas. Deborah's very tiny kitchen has barely
enough room for the two ovens in which her workers bake the pizzas.
Deborah signed a lease obligating her to pay the rent for the two
ovens for the next year. Because of this, and because Deborah's
kitchen cannot fit more than two ovens, Deborah cannot change the
number of ovens she uses in her production of...

4.) Exhibit 7-8 Costs schedules for producing
pizza
Pizzas
Fixed
Cost
Variable
Cost
Total
Cost
Marginal
Cost
0
$
$
$
$
1
5
2
13
3
10
4
100
140
5
20
6
85
7
215
By filling in the blanks in Exhibit 7-8, the total cost of
producing 3 pizzas is shown to be equal to:
a $100.
b $105.
c $113.
d $123.
e $23.
6.) Constant returns to scale exist over the range of output...

Marco's Pizza is a small pizzeria. The firm's short-run
production function is described in the table below. Assume that
Marco's uses only two inputs to produce pizza: labor and capital
(the oven). Marco's cost of labor is $400 per worker per week, and
his cost of capital is $500 per week.
Labor
(workers per week)
Output
(pizzas per week)
1
74
2
152
3
228
4
296
5
350
6
384
In the scenario above, the marginal product of Marco's...

3. Use the following table to complete the question.
Workers
Output
Marginal Product
Total Cost
Average Total Cost
Marginal Cost
0
0
1
20
2
50
3
90
4
120
5
140
6
150
7
155
a) A worker costs $100 a day, and the firm has fixed costs of
$200. Use this information, fill in the table.
b) What is the relationship between average total cost and
marginal cost?
c) What is the relationship between marginal product and
marginal...

3. Use the following table to complete the question.
Workers
Output
Marginal Product
Total Cost
Average Total Cost
Marginal Cost
0
0
1
20
2
50
3
90
4
120
5
140
6
150
7
155
a) A worker costs $100 a day, and the firm has fixed costs of
$200. Use this information, fill in the table.
b) What is the relationship between average total cost and
marginal cost?
c) What is the relationship between marginal product and
marginal...

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