# 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.

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 four ovens and the cost of the four

ovens is \$1,000. Each worker is paid \$500 per week.

Workers employed

Qty of pizzas produced per week

1

0

2

75

3

180

4

360

5

600

6

900

7

1140

8

1260

9

1360

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.

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• Rated 4 times

### 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 …

• Rated 2 times

### 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 …

• Not rated

### William is the owner of a small pizza shop

William is the owner of a small pizza shopand 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 …

• Not rated

### William is the owner of a small pizza shop

William is the owner of a small pizza shopand 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 …

• Not rated

### BUS EC

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 …

• Not rated

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

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 four ovens and the cost of the four
ovens is \$1,000. Each …

• Not rated

### Production Cost Analysis and Estimation 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 four ovens and the cost of the four
ovens is \$1,000. Each …

• Not rated

### Production Cost Analysis and Estimation

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 four ovens and the cost of the four

ovens is \$1,000. Each …

• Not rated

### 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 …

• Not rated

### 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

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 …