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Question: eileens performance pizza is a small restaurant in denver that...

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Eileens Performance Pizza is a small restaurant in Denver that sells gluten-free pizzas. Eileens very tiny kitchen has barely enough room for the four ovens in which her workers bake the pizzas. Eileen signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this, and because Eileens kitchen cannot fit more than four ovens, Eileen cannot change the number of ovens she uses in her production of pizzas in the short run. However, Eileens decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Eileen lets them know how many workers she needs for each day of the week. In the short run, these workers are ovens areY inputs, and the inputs Eileens daily production schedule is presented in the following table. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Output Marginal Product of Laboir Number of Workers (Pizzas) Pizzas) 0 0 60 100 3 130 4 150 160

On the following graph, plot Eileens 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) 200 180 160 Production Function N 140 120 O 100 80 60 40 20 4 LABOR HIRED (Number of workers)

Suppose that labor is Eileens only variable cost and that she has a fixed cost of $20 per day and pays each of her workers $30 per day. Use the orange points (square symbol) to plot Eileens total cost curve on the following graph using the quantities from the preceding table. 200 T 180 Total Cost 160 140 ㆆ120 100 80 80 40 20 0 20 40 60 8100 120 140 10 0 200 QUANTITY OF OUTPUT (Pizzas) True or False: The shape of the production function reflects the law of diminishing marginal returns. O True O False

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