Question

Inputs and outputs Megan's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Megan's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Megan signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Megan's kitchen cannot fit more than two ovens, Megan cannot change the number of ovens she uses in her production of pizzas in the short run. However, Megan's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Megan lets them know how many workers she needs for each day of the week.

In the short run, these workers are___(VARIABLE OR FIXED)___ inputs, and the ovens are ___(VARIABLE OR FIXED)_____inputs.

Answer 1

In the short run, the workers are variable inputs and the ovens are fixed inputs.

Step-by-step explanation:

Inputs in production can be classified as fixed or variable. Fixed inputs are those that can't easily be increased or decreased in a short period of time. In the case of Megan's Performance Pizza, the ovens are considered fixed inputs because Megan has already signed a lease for them and cannot change the number of ovens she uses in the short run. On the other hand, the number of workers Megan hires can vary from week to week, so they are considered variable inputs.

Answer 2

In the short run, these workers are variable inputs, and the ovens are Fixed inputs.

Step-by-step explanation:

By analyzing the information, we can understand that, Megan can grow slowly and steadily because the constraint here is that, Megan has so many people to work but they are students and he cannot buy more than 2 oven's at present considering his financial background and the size of the kitchen.

So the wise work is that, he keeps changing the number of workers every time but the number of oven to be used every time is only 2.

So workers are variable (changing) and ovens are fixed.