Janet's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Janet's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Janet signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Janet's kitchen cannot fit more than two ovens, Janet cannot change the number of ovens she uses in her production of pizzas in the short run. However, Janet's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Janet lets them know how many workers she needs for each day of the week. In the short run, these workers are (Variable/Fixed) inputs, and the ovens are (Fixed/Variable) inputs.
Janet'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.
Labor Output (Number of workers) Marginal Product of Labor
(Pizzas) (Pizzas)
0 0
1 70
2 120
3 160
4 190
5 200

Janet's Performance Pizza

Marginal Product of Labor

Labor            Output                    Marginal

         (Number of workers)   Product of Labor

                   (Pizzas)                     (Pizzas)

0                        0                           0

1                       70                         70

2                    120                         50

3                    160                         40

4                    190                         30

5                   200                         10

Explanation:

a) Data and Calculations:

Labor            Output                    Marginal

         (Number of workers)   Product of Labor

                   (Pizzas)                     (Pizzas)

0                         0                           0 (0 - 0)

1                        70                         70 (70 - 0)

2                     120                         50 (120 - 70)

3                     160                         40 (160 - 120)

4                     190                         30 (190 - 160)

5                    200                         10 (200 - 190)

b) Janet Performance Pizza's marginal product of labor describes the change in the number of pizzas that the restaurant produces by employing one more unit of labor (worker).

answer makes less frequent trips to the bank and firms make less frequent price changes;