Chapter 14 Homework 2. Inputs and outputs Aliyah's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Aliyah's small shop has barely enough room for customers to stand and wait, let alone the four pizza ovens necessary to keep up with the hungry student customers. Aliyah signed a lease renting both the four ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Aliyah is unable to change the store's number of pizza ovens in the short run. However, Aliyah does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Aliyah 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 Aliyah's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Labor Output Marginal Product of Labor (Number of workers) (Pizzas) (Pizzas) O O H AA 90 N M 120 140 In 150 On the following graph, plot Aliyah'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). MacBook Air F10 * 0O 28 LO O # m G N w O C WU . . I Z X 26Blackboard Learn MindTap - Cengage Learning Course Hero CENGAGE | MINDTAP Chapter 14 Homework Use the orange points (square symbol) to plot Aliyah's total cost curve on the following graph using the quantities from the preceding table. ols 200 180 Total Cost 8 TOTAL COST (Dollars) 8 O o 20 40 60 80 100 120 140 160 180 200 QUANTITY OF OUTPUT (Pizzas) The law of diminishing marginal product of labor is demonstrated by which of the following? 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. Total output declines as you increase the quantity of labor. MacBook Air * # M de LO CO O O LU I LLCENGAGE MINDTAP Chapter 14 Homework On the following graph, plot Aliyah'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). Production Function 8 QUANTITY OF OUTPUT (Pizzas) o 2 LABOR (Number of workers) Suppose that Aliyah's only variable cost is labor. Assume that Aliyah faces daily fixed costs of $30 and pays all workers the same daily wage of $30. Use the orange points (square symbol) to plot Aliyah's total cost curve on the following graph using the quantities from the preceding table. MacBook Air F10 * # m A 4 89 LO