-Silvio's Pizza Is a Small Pizzeria

question 299

Multiple Choice

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. With Plant 2, Silvio's average product per worker is highest if ________ workers per week are employed.

• A) 3
• B) 4
• C) 5
• D) 2

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Definitions:

Holder In Due Course

A party who has acquired a negotiable instrument legally and is protected against certain defenses set forth by the original parties.

Bill Of Exchange

A written, unconditional order by one party to another, demanding the payment of a specified sum of money.

Bullion

Precious metal in the form of bars or ingots, primarily gold or silver, traded on commodity markets.

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