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- Download: https://solutionzip.com/downloads/bus-640-week-3-williams-pizza-shop/
- William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. Williamโs pizza shop owns four ovens and the cost of the four ovens is $1,000. Each worker is paid $500 per week.
- Workers employ Qty of pizzas prod. per week
- 0 0
- 1 75
- 2 180
- 3 360
- 4 600
- 5 900
- 6 1140
- 7 1260
- 8 1360
- Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary.
- Which inputs are fixed and which are variable in the production function of Williamโs pizza shop? Over what ranges do there appear to be increasing, constant, and/or diminishing returns to the number of workers employed?
- What number of workers appears to be most efficient in terms of pizza product per worker?
- What number of workers appears to minimize the marginal cost of pizza production assuming that each pizza worker is paid $500 per week?
- Why would marginal productivity decline when you hire more workers in the short run after a certain level?
- How would expanding the business affect the economies of scale? When would you have constant returns to scale or diseconomies of scale? Describe your answer.
- Download: https://solutionzip.com/downloads/bus-640-week-3-williams-pizza-shop/
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