However, Rina's decision regarding how many workers to use can vary from week to week because her workers tend to be students. E
ach Monday, Rina lets them know how many workers she needs for each day of the week. In the short run, these workers are inputs, and the ovens are inputs.
2 answers:
Answer:
N° of Workers Output Marginal Product of Labor Total
(Pizzas) (Pizzas per worker) Cost
0 0 - $20
1 60 60 $50
2 100 50 $80
3 130 43.33 $110
4 150 37.5 $140
5 160 32 $170
In the attached graph, the number of workers is given in the X axis, and the total production production of pizzas in the Y axis.
The green line represents Rina's total production function, while the blue line represents MPL. The total cost curve is represented by the orange line.
True or <u>False</u>: The shape of the production function reflects the law of increasing marginal returns. ⇒ FALSE, THE BLUE CURVE SHOWS THE LAW OF DECREASING MARGINAL RETURNS
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