Question

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

Answer 1

Answer: variable; fixed

Explanation:

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

In the short run, variable inputs in production can be changed to adapt to the changing economic conditions while fixed inputs cannot. In the long run however, all inputs are variable and so can be changed.

As this is the short run and the workers can be changed, they are the variable inputs.

The ovens however, cannot be changed so the ovens are the fixed inputs.