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In the short run, a restaurant can produce 1,000 meals of burgers, fries and shakes per day with 10 employees per shift. After the first
In the short run, a restaurant can produce 1,000 meals of burgers, fries and shakes per day with 10 employees per shift. After the first year in business, they have 12 employees per shift, but output has dropped to 900 meals/day.
(A)Why have they experienced a decrease in output related to the businesses production process?
After recognizing what was going on, the business owners adjusted and increased output to 1,500 meals/day with 12 employees per shift in the same single kitchen.
(B)What could have changed?
Please type the answers.
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