Kevin's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Kevin's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Kevin signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Kevin's kitchen cannot fit more than three ovens, Kevin cannot change the number of ovens he uses in his production of pizzas in the short run. However, Kevin's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Kevin lets them know how many workers he needs for each day of the week. In the short run, these workers are inputs, and the ovens are inputs. Kevin'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.

Number of Workers

Output

Marginal Product of Labor

(Pizzas)

(Pizzas)

0 0
1 50
2 90
3 120
4 140
5 150
On the following graph, plot Kevin'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).

(Graph... Draw the production)

Suppose that labor is Kevin'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 Kevin's total cost curve on the following graph using the quantities from the preceding table.

(Graph... Draw the total cost)

True or False: The shape of the production function reflects the law of diminishing marginal returns.

True

False