Pizza anyone?

Question

(3). Please answer question as modified. Specifically answer the following using the chart:

(a). Assume that chefs are paid $89 per day and pizzas sell for $9. How many chefs will this pizza parlor employ and why (supporting numbers please)? How many chefs will they employ at $124 per day?

(b). Answer part (a) assuming the price of pizza increases from $9 each to $12 each.

Number of Chefs Number of Pizzas per Day

1 40

2 64

3 82

4 92

5 100

6 92

Answer 1

L - Labor (chefs)

Q - quantity of pizza

TC - total cost=Wage*L

TR - total revenue=Q*P

P - price of pizza

a)

For Wage per chef=$89 and price of pizza=$9

L......Q......TC...... TR......Profit

1......40......89...... 360......271

2......64.....178..... 576......398

3......82.....267..... 738......471

4......92.....356..... 828......472 <<--Maximum profit

5......100....445..... 900......455

6......92......534...... 828......294

For Wage per chef=$124 and price of pizza=$9

L......Q......TC...... TR......Profit

1......40......124...... 360......236

2......64......248...... 576......328

3......82......372...... 738......366  <<--Maximum profit

4......92......496...... 828......332

5......100....620...... 900......280

6......92......744...... 828......84

Answer:

W=$86; L=4; P=$9

W=$124; L=3; P=$9

b)

For Wage per chef=$89 and price of pizza=$12

L......Q......TC...... TR......Profit

1......40......89....... 480......391

2......64......178..... 768......590

3......82......267..... 984......717

4......92......356.... 1104......748

5......100....445..... 1200......755  <<--Maximum profit

6......92......534..... 1104......570

For Wage per chef=$124 and price of pizza=$12

L......Q......TC...... TR......Profit

1......40......124...... 480......356

2......64......248...... 768......520

3......82......372...... 984......612  <<--Maximum profit

4......92......496..... 1104......608

5......100.....620..... 1200......580

6......92......744...... 1104......360

Answer:

W=$86; L=5; P=$12

W=$124; L=3; P=$12

Answer 2

your question is very confusing... what is it about diminishing marginal utility or returns to scale?

Answer 3

dont know very confusing and stupip ?

maybe 1