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(Solved): Aneesha's Pizzas is a takeout-only pizza parlor servicing the college campus of Morgantown that sp ...



Aneeshas Pizzas is a takeout-only pizza parlor servicing the college campus of Morgantown that specializes in vegan pizzas. True or False: The shape of the production function reflects the law of diminishing marginal returns.
True
False

Aneesha's Pizzas is a takeout-only pizza parlor servicing the college campus of Morgantown that specializes in vegan pizzas. Aneesha's small shop has barely enough room for customers to stand and wait, let alone the four pizza ovens necessary to keep up with the hungry student customers. Aneesha signed a lease renting both the four ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Aneesha is unable to change the store's number of pizza ovens in the short run. However, Aneesha does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Aneesha contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following table presents Aneesha's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. On the following graph, plot Aneesha's production function using the green points (triangle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Hint: Be sure to plot the first point at \( (0,0) \). Suppose that Aneesha's only variable cost is labor. Assume that Aneesha faces daily fixed costs of \( \$ 30 \) and pays all workers the same daily wage of \( \$ 30 \). True or False: The shape of the production function reflects the law of diminishing marginal returns. True False


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Solution: Production Function Production function is a graphical representation, and it is the relationship between the quantity of inputs labor and t
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