Behind the Supply Curve - End of Chapter Problem Quantity of labor Quantity of frozen Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university (workers) yogurt (cups) town. Marty owns three frozen yogurt machines. His other inputs are refrigerators, frozen 0 0 yogurt mix, cups, sprinkle toppings, and, of course, workers. He estimates that his daily production function when he varies the number of workers employed (and at the same 110 time, of course, yogurt mix, cups, and so on) is as shown in the accompanying table. 2 200 a. What are the fixed inputs and variable inputs in the production of cups of frozen yogurt? Place the inputs according to their type. 270 4 300 5 320 6 330What are the fixed inputs and variable inputs in the production of cups of frozen gurt? Place the inputs according to their type. 270 300 320 6 330 Fixed inputs Variable inputs Answer Bank Sprinkle toppings Frozen yogurt shop Frozen yogurt mix Refrigerators Cups Labor Frozen yogurt machines. Using the table and the accompanying diagram, draw the total product curve TP 350 300 250 200 Quantity of frozen yogurt (cups) 150 100 50 0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Quantity of labor (workers):. What is the marginal product of the rst worker? The second worker? The third worker? Marginal product of the rst worker: cups of frozen yogurt Marginal product of the second worker: |:| cups of frozen yogurt Marginal product of the third worker: cups of frozen yogurt Why does marginal product decline as the number of workers increases? 0 The Law of Diminishing Marginal Returns to Labor states that marginal worker productivity is always decreasing in the number of workers hired. O The number of workers increases. but the number of yogurt machines does not. Since additional workers reduce each worker's access to capital. each additional worker contributes less to total output. 0 The number of workers increases. but the number of yogurt cups does not. Assigning multiple workers to produce one cup of yogurt reduces marginal worker productivity