# BUS 640 W3 P1: William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns four ovens and the cost of the four ovens is $1,000. Each worker is paid $500 per week

**Adams Nigel**

William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns four ovens and the cost of the four ovens is $1,000. Each worker is paid $500 per week.

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 William’s 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.

- 6 years ago

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### BUS 640 W3 P1

William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns four ovens and the cost of the four ovens is $1,000. Each worker is …7 years ago### Production Cost Analysis and Estimation Applied Problems

# Production Cost Analysis and Estimation Applied Problems

7 years ago### Production Cost Analysis and Estimation Applied Problems

Please complete the followingtwo applied problems:**Problem 1:**

William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns …5 years ago### William is the owner of a small pizza shop

**William is the owner of a small pizza shop**and is thinking of increasing products

and lowering costs. William’s pizza shop owns four ovens and the cost of the four

ovens is $1,000. Each worker is paid …7 years ago### William is the owner of a small pizza shop

NOT RATED**William is the owner of a small pizza shop**and is thinking of increasing products

and lowering costs. William’s pizza shop owns four ovens and the cost of the four

ovens is $1,000. Each worker is …7 years ago### William is the owner of a small pizza shop

NOT RATED**William is the owner of a small pizza shop**and is thinking of increasing products

and lowering costs. William’s pizza shop owns four ovens and the cost of the four

ovens is $1,000. Each worker is …7 years ago### William is the owner of a small pizza shop and is thinking of increasing products and lowering costs

NOT RATEDProblem 1:

William is the owner of a small pizza shop and is thinking of increasing products

and lowering costs. William’s pizza shop owns four ovens and the cost of the four

ovens is $1,000. Each …7 years ago### BUS 640 W3 P1

NOT RATEDWilliam is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns four ovens and the cost of the four ovens is $1,000. Each worker is …

7 years ago### William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns four ovens and the cost of the four ovens is $1,000. Each worker is paid $500 per week.

NOT RATEDProblem 1:

William is the owner of a small pizza shop and is thinking of increasing products

and lowering costs. William’s pizza shop owns four ovens and the cost of the four

ovens is $1,000. Each …6 years ago### Production Cost Analysis and Estimation

NOT RATEDProblem 1:

William is the owner of a small pizza shop and is thinking of increasing products

and lowering costs. William’s pizza shop owns four ovens and the cost of the four

ovens is $1,000. Each …6 years ago