Crystal's Performance Pizza is a small restaurant in Denver that sells gluten-free pizzas. Crystal's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Crystal signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Crystal's kitchen cannot fit more than three ovens, Crystal cannot change the number of ovens she uses in her production of pizzas in the short run. However, Crystal's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Crystal lets them know how many workers she needs for each day of the week. In the short run, these workers are (variable, fixed) inputs, and the ovens are (fixed, variable) inputs.
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Home » Business » Crystal's Performance Pizza is a small restaurant in Denver that sells gluten-free pizzas. Crystal's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas.