Question

Manuel's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Manuel's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Manuel signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Manuel's kitchen cannot fit more than three ovens, Manuel cannot change the number of ovens he uses in his production of pizzas in the short run. However, Manuel's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Manuel 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

Answer:

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

Explanation:

Giving the following information:

Manuel's kitchen cannot fit more than three ovens, Manuel cannot change the number of ovens he uses in his production of pizzas in the short run. However, Manuel's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Manuel lets them know how many workers he needs for each day of the week.

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