BUS 640 Week 3 HW William Pizza and Paradise Shoes
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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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