Question

Shen's Performance Pizza is a small restaurant in Philadelphia that sells gluten-free pizzas. Shen's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Shen signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Shen's kitchen cannot fit more than three ovens, Shen cannot change the number of ovens he uses in his production of pizzas in the short run.

However, Shen's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Shen lets them know how many workers he needs for each day of the week. In the short run, these workers are_________ inputs, and the ovens are__________ inputs.

Answer 1

Variable

Fixed

Step-by-step explanation:

Varbaibe inputs are inputs that can be changed or varied with production. If production is rising, the demand for variable inputs would increase. Because Shen varies his workers, they are a variable input.

Fixed inputs are inputs that cannot be varied or changed in the short run.

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