Respond to the response below:

The difference between the short and long run is directly related to understanding the difference between inputs. Fixed and variable inputs make up the time that defines a short run and a long run. The short run is "...the period of time that is too short to vary all the inputs; one or more of the inputs must remain fixed. In the short run, labor is generally the only variable factor of production. The long run is the period of time in which all inputs, including physical operations and equipment, can be varied." (Amacher & Pate, 2019) Variable inputs are the resources used to produce goods and can be increased or decreased in the short run. Fixed inputs are resources that are used to make a product that cannot be changed in the short run. For Sarah's bakery, here fixed inputs would be the building she operates out of and the number of resources she needs to produce baked goods, such as the number of ovens she owns. Variable inputs for Sarah's bakery would be labor, the electricity she uses to keep the lights on in her bakery, and specific hours of operation she may have throughout the year.

Marginal productivity will decrease when the number of employees exceeds the output from production through specialization that increases production. However, too many people working in the same area causes things to slow down, reduce productivity, and become negative when shown on a graph. Marginal productivity and diminishing returns can be solved by utilizing the total product curve and marginal product curve to deliver the level of inputs appropriate for the optimal output for production.