Question

Inputs and outputs Iyana's Pizzas is a takeout-only pizza parlor servicing the college campus of Madison that specializes in vegan pizzas. Iyana's small shop has barely enough room for customers to stand and wait, let alone the three pina ovens necessary to keep up with the hungry student customers. Iyana signed a lease renting both the three ovens and the storefront for the next year. Due to the terms of the lease and the bulding's size constraint, fyana is unable to change the store's number of pizza ovens in the short run. However, Iyana does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Iyana contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short fun, the store employees are _____. inputs, and pizza ovens are _____ inputs.

Answer 1

In Iyana's Pizzas, employees are considered variable inputs because their numbers can be adjusted weekly, while pizza ovens are fixed inputs due to the lease terms and store size.

Step-by-step explanation:

In the context of Iyana's Pizzas, a takeout-only vegan pizza parlor, the concept of variable inputs and fixed inputs is crucial to understanding the production process. Variable inputs are those aspects of production that can be altered or adjusted in the short term based on the level of output required. In this scenario, employees can be considered variable inputs because Iyana has the flexibility to schedule more or fewer staff members on a weekly basis according to the demand. On the other hand, pizza ovens are categorized as fixed inputs because their number cannot be changed in the short run due to the lease agreement and the physical constraints of the store's size.

In summary, in the short run, the store employees are variable inputs, and pizza ovens are fixed inputs in Iyana's production process. This reflects Iyana's ability to adjust the workforce on a weekly basis to align with demand fluctuations, while being unable to modify the amount of larger capital equipment such as pizza ovens.