Question

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

However, Ginny's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Ginny lets them know how many workers she needs for each day of the week. In the short run, these workers are __________ inputs, and the ovens are __________ inputs.
Ginny'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.

Output Marginal Product of Labor
Number of Workers (Pizzas) (Pizzas)
0 0
1 70
2 120
3 160
4 190
5 200

Answer 1

In the short run, these workers are variable inputs, and the ovens are fixed inputs.

Step-by-step explanation:

See attached file