Question

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

Answer 1

Tim's performance pizza should call up its landlord and try to make a deal with him/her. It could obviously be in both parties' interest if for example tim decided to extend his contract while reducing the number of ovens to two. The landlord gets the restaurant space rented for a guaranteed longer amount of time and tim gets more workspace and a more efficient operation.