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

However, Poornima's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Poornima 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.

Question

Business

Michelle Fletcher

24 January, 18:35

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

However, Poornima's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Poornima 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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Answers (1)

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Stephany Barnes · Answer 1

workers are variable

while ovens fixed

Explanation:

We are asked for the labor factor (workers)

and the capital factor (ovens)

The worker in thie short-run are variable input as Porrnima's management decision can decrease or increase their quantity pretty much at will stponing the cash outlay if wanted to.

While the ovens in the other hand, are fixed. the management can't neither decrease or increase the quantity of ovens and cash outlay associate with them.