Lorenzo's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Lorenzo's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Lorenzo signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Lorenzo's kitchen cannot fit more than two ovens, Lorenzo cannot change the number of ovens he uses in his production of pizzas in the short run. However, Lorenzo's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Lorenzo lets them know how many workers he needs for each day of the week. In the short run, these workers are resources, and the ovens are resources. Lorenzo'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. On the following graph, plot Lorenzo'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. 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 labor is Lorenzo's only variable cost and that he has a fixed cost of $30 per day and pays each of his workers $30 per day. Use the orange points (square symbol) to plot Lorenzo's total cost curve on the following graph using the quantities from the preceding table. The law of diminishing marginal product of labor is demonstrated by which of the following? Total output increases at a decreasing rate as you increase the quantity of labor. Total output declines as you increase the quantity of labor. Total output increases only when you increase both labor and ovens..

1. Lorenzo's Performance Pizza is a small restaurant in New York City that sells gluten-free
pizzas. Lorenzo's very tiny kitchen has barely enough room for the two ovens in which his
workers bake the pizzas. Lorenzo signed a lease obligating him to pay the rent for the two ovens
for the next year. Because of this, and because Lorenzo's kitchen cannot fit more than two ovens,
Lorenzo cannot change the number of ovens he uses in his production of pizzas in the short run.
However, Lorenzo's decision regarding how many workers to use can vary from week to week
because his workers tend to be students. Each Monday, Lorenzo lets them know how many
workers he needs for each day of the week. In the short run, these workers are resources, and the
ovens are resources. Lorenzo'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. On the
following graph, plot Lorenzo'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.
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 labor is Lorenzo's only variable cost and that he has a fixed cost of $30 per day and
pays each of his workers $30 per day. Use the orange points (square symbol) to plot Lorenzo's
total cost curve on the following graph using the quantities from the preceding table. The law of
diminishing marginal product of labor is demonstrated by which of the following? Total output
increases at a decreasing rate as you increase the quantity of labor. Total output declines as you
increase the quantity of labor. Total output increases only when you increase both labor and
ovens.