Final answer:
The assertion that a project process requires high capital investment and is inflexible is false; it generally refers to a more adaptable, labor-intensive manufacturing setup. Inputs in pizza production include labor, capital, and raw materials like flour and cheese. Firms adjust their production methods based on cost changes to minimize total costs. Option B is correct.
Step-by-step explanation:
The statement in question is false. A project process, also known as a job shop, typically involves a more flexible manufacturing process tailored to unique, custom products and services. It often requires skilled labor and may involve a higher variable cost due to its adaptability to different projects, as opposed to an inflexible process with a high capital investment that is more characteristic of mass production.
Production consists of transforming inputs into outputs—a firm takes factors such as labor, capital, and raw materials to produce goods or services. In the context of pizza making, the inputs would include physical ingredients such as flour, water, yeast, tomatoes, spices, and cheese; the labor provided by the pizzaiolo; and the capital, such as the oven and other equipment used.
When considering a shift in production technology due to changes in cost, firms will look to minimize total costs. If the cost of one input, such as machines (capital), increases, there might be a shift towards using more labor if it is relatively less expensive. Conversely, if machine costs decrease, a firm might lean towards a more capital-intensive production method.