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The table shows the output of pizzas for a given number of workers (L) and number of pizza ovens ...

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The table shows the output of pizzas for a given number of workers (L) and number of pizza ovens ...

The table shows the output of pizzas for a given number of workers (L) and number of pizza ovens (K). The pizza company can hire anywhere between 1 and 3 workers and can rent 1 or 2 pizza ovens. Pizzas sell for $11 each.

	Number of Workers (L)
Number of Pizza Ovens (K)	1	2	3
1	4	7	9

Suppose the wage is $33 a day. How many workers would you hire if you had one pizza oven? How many workers would you hire if you had two pizza ovens? Are pizza ovens labor-saving or labor-complementary?

▸ 2 workers, 3 workers, labor-complementary

▸ 3 workers, 2 workers, labor-complementary

▸ 3 workers, 2 workers, labor-saving

▸ 2 workers, 3 workers, labor-saving

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 78 times

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