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Business, 05.05.2020 06:55 DesperatforanA

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

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