Iyana's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Iyana's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Iyana signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Iyana is unable to change the store's number of pizza ovens in the short run. However, Iyana does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Iyana contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following table presents Iyana's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Output Marginal Product of Labor (Pizzas) Labor (Number of workers) (Pizzas) 0 1 2 3 4 5 0 60 100 130 150 160

Iyana's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Iyana's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Iyana signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Iyana is unable to change the store's number of pizza ovens in the short run. However, Iyana does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Iyana contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following table presents Iyana's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Output Marginal Product of Labor (Pizzas) Labor (Number of workers) (Pizzas) 0 1 2 3 4 5 0 60 100 130 150 160

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 2E

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