Output (Pizzas Per Day)

question 309

Essay

Output (pizzas per day)

-Tony's Pizza's production function is shown in the table above.
a) Suppose Tony operates Plant 2. He hires 2 workers and produces 20 pizzas a day. Is the pizzeria technologically efficient? Why or why not?
b) Suppose Tony operates Plant 1. He hires 2 workers and produces 18 pizzas per day. Is Tony's Pizza technologically efficient? Why or why not? Can Tony increase production to 22 pizzas a day in the short run? If yes, how?
c) Suppose Tony operates Plant 3. What is the marginal product of labor when the fourth worker is hired? When operating Plant 3, does Tony experience diminishing marginal returns? Explain.
d) Suppose Tony currently uses Plant 3. Can he increase production from 40 to 50 pizzas per day in the short run? In the long run? If yes, how?

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Definitions:

Educational Practices

Educational practices encompass teaching methods, strategies, and approaches educators utilize to facilitate learning and enhance the educational experience for students.

Inherently Able

Describes an individual's natural capacity or inherent ability to perform tasks or understand concepts.

Motivated to Learn

Having the inner drive or desire to gain knowledge or skills through study, experience, or teaching.

Peer Influence

The effect that the attitudes, values, and behaviors of peers have on one’s own attitude, values, and behaviors.