BUS 640 Week 3 HW William Pizza and Paradise Shoes Production Cost Analysis and Estimation Applied Problems

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BUS 640 Week 3 HW William Pizza and Paradise Shoes Production Cost Analysis and Estimation Applied Problems

Please complete the followingtwo applied problems:

Problem 1:

William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William's pizza shop owns four ovens and the cost of the four ovens is 1,000. Each worker is paid 500 per week.

L

TP

MP

AP

0

0

1

75

75

75

2

180

105

90

3

360

180

120

4

600

240

150

5

900

300

180

6

1140

240

190

7

1260

120

180

8

1360

100

170

Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary.

a. Which inputs are fixed and which are variable in the production function of William's pizza shop? Over what ranges do there appear to be...

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