2. Inputs and outputs

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

A) However, Yvette's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Yvette lets them know how many workers she needs for each day of the week. In the short run, these workers are (Variable or fixed) resources, and the ovens are (Variable or fixed) resources.

B) Yvette'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. Total Product Marginal Product of Labor Number of Workers (Pizzas) (Pizzas) 0 0 60 100 130 150 160200 A 180 Production Function 180 140 120 100 QUANTITY OF OUTPUT (Pizzas) 80 80 40 20 0 0 2 3 4 1 LABOR HIRED (Number of workers)200 180 Total Cost 160 140 120 100 TOTAL COST (Dollars) 80 80 40 20 200 20 40 60 80 100 120 140 180 180 0 QUANTITY OF OUTPUT (Pizzas)