Post two "annotations" your post(s) please include the following:

1. Two excerpts of the article with your thoughts on each excerpt.
2. Incorporation of key concepts in each excerpt.

Micro Module 5: Article Discussion Assignment

Instructions:

For this assignment, please review both the excerpt from the textbook on production and a CNBC article, "22-year-old is on track to make $77,000 a year from his side hustle turned businesswithout a college degree" and make two substantive annotations, comments, and/or questions about a specific part of the textbook and article.Also, reply to at least one other student's post thoughtfully and thoroughly. The annotation, comment, or question must be substantive. Your comments are viewable by your classmates.

Think about these questions in your reading of the article: Recognize accounting versus economic profit? Does the law of diminishing marginal returns and the concept of short run and long run apply to the article? What are some fixed and variable inputs and why does this distinction matter?

Relevant Excerpts from Textbook (Microeconomics 13^th edition, Roger A. Arnold):

8-3 Production

Production is a transformation of resources or inputs into goods and services. You may think of production as you might think of making a cake. It takes certain ingredients to make a cake: sugar, flour, and so on. Similarly, it takes certain resources, or inputs, to produce a computer, a haircut, a piece of furniture, or a house.

Economists often talk about two types of inputs in the production process: fixed and variable. Afixed input is an input whose quantity cannot be changed as output changes. To illustrate, suppose the McMahon and McGee Bookshelf Company has rented a factory under a six-month lease: McMahon and McGee, the owners of the company, have contracted to pay the $16,000 monthly rent for six months, no matter what. Whether McMahon and McGee produce one bookshelf or 7,000, the $16,000 rent for the factory must be paid. The factory is a fixed input in the production process of bookshelves.

Avariable input is an input whose quantity can be changed as output changes. Examples of variable inputs for the McMahon and McGee Bookshelf Company include wood, paint, nails, and so on. These inputs can (and most likely will) change as the production of bookshelves changes. As they produce more bookshelves, McMahon and McGee purchase more of these inputs; as they produce fewer bookshelves, they purchase fewer of these inputs. Labor might also be a variable input for McMahon and McGee. As they produce more bookshelves, they might hire more employees; as they produce fewer bookshelves, they might lay off some.

If any of the inputs of a firm are fixed inputs, then it is said to be producing in the short run. In other words, the short run is a period during which some inputs are fixed.

If none of the inputs of a firm is a fixed inputif all inputs are variablethen the firm is said to be producing in the long run. In other words, the long run is a period during which all inputs can be varied. (No inputs are fixed.)

Themarginal physical product (MPP) of a variable input is equal to the change in output that results from changing the variable input by one unit while holding all other inputs fixed.

In the short run, as additional units of a variable input are added to a fixed input, the marginal physical product of the variable input may increase at first. Eventually, the marginal physical product of the variable input decreases. The point at which marginal physical product decreases is the point at which diminishing marginal returns have set in.

The point at which the MPP of labor first declines is the point at which diminishing marginal returns are said to have set in. Diminishing marginal returns are common in productionso common, in fact, that economists refer to the law of diminishing marginal returns (or the law of diminishing marginal product). Thelaw of diminishing marginal returns states that as ever larger amounts of a variable input are combined with fixed inputs, eventually the marginal physical product of the variable input will decline.

New York Times Article

Source:https://www.cnbc.com/2023/08/17/22-year-old-on-track-to-make-77000-dollars-per-year-without-a-college-degree.html#:~:text=In%202023%2C%20Roblero%20found%20more,earned%20at%20his%20old%20job.

22-year-old is on track to make $77,000 a year from his side hustle turned businesswithout a college degree

Published Thu, Aug 17 2023

Author: Mike Winters; Mickey Todiwala

Outside Randy Roblero's single-story family home sits his cargo van, emblazoned with the red and blue signage for his company, Beyond Limits of Palm Beach, a mobile car detailing business in West Palm Beach, Florida.

The van isn'tjust for advertising a "moving billboard," he calls it. It's also his office. Inside is everything he needs to clean and restore vehicles: an electricity generator, a 100-gallon water tank, pressure washer, Shop-Vac vacuum, waxing equipment and various cleaning products.

Six days a week, Roblero, 22, works out of the van, servicing three to four clients per day. To avoid the stifling Florida heat, he usually starts at 7:30 a.m. and works until late afternoon.

Roblero started cleaning cars as a side hustle when he was 18, but it wasn't until he purchased the van in 2021 that he got the "courage" to become a full-time business owner, he says.

\f1573 UA\fmake it Subscriptions and memberships: $12 Phone: $35 $ Rent and utilities: $1,000 Transportation: $189- Randy's spending in June 2023 $2,583 Food: $549 + Discretionary: $798* * Entertainment, clothing, dental braces + Groceries, restaurants $ Gas, car insurance S His portion for a family plan 1 Sam's Club, SoundCloud, video editing app