2. Inputs and outputs a Raphael's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Raphael's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Raphael signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Raphael's kitchen cannot fit more than four ovens, Raphael cannot change the number of ovens he uses in his production of pizzas in the short run. However, Raphael's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Raphael let them know how many workers he needs for each day of the week. In the short run, these workers are variable inputs, and the ovens are fixed Inputs. Raphael's 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 Labor (Number of workers) (Pizzas) (Pizzas) Labor 0 0 1 2 3 100 80 60 100 180 240 280 300 40 4 V 20 5 On the following graph, plot Raphael's 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). 300 270 Production Function 240 210 180 QUANTITY OF OUTPUT (Pizzas) 150 120 90 60 30 0 0 2 LABOR (Number of workers) Suppose that laboris Raphael's only variable cost and that he has a fixed cost of $50 per day and pays each of his workers $40 per day. Use the orange points (square symbol) to plot Raphael's total cost curve on the following graph using the quantities from the preceding table. 300 - 270 240 Total Cost 210 180 TOTAL COST (Dollars) 150 120 90 60 30 0 0 30 00 90 120 150 180 210 240 270 300 QUANTITY OF OUTPUT (Pizzas) The law of diminishing marginal product of labor is demonstrated by which of the following? Total output declines as you increase the quantity of labor. Total output increases at a decreasing rate as you increase the quantity of labor. Total output increases only when you increase both labor and ovens