Question
Susan's Performance Pizza is a small restaurant in Winnipeg that sells gluten-free pizzas. Susan's very tiny kitchen has barely enough room for the two ovens
Susan's Performance Pizza is a small restaurant in Winnipeg that sells gluten-free pizzas. Susan's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Susan signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Susan's kitchen cannot fit more than two ovens, Susan cannot change the number of ovens she uses in her production of pizzas in the short run.
However, Susan's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Susan lets them know how many workers she needs for each day of the week. In the short run, these workers are_____ (variable or fixed) inputs, and the ovens are ____ (variable or fixed?)inputs.
and then
The law of diminishing marginal product of labour is demonstrated by which of the following?
a) Total output increases only when you increase both labour and ovens.
b) Total output declines as you increase the quantity of labour.
c) Total output increases at a decreasing rate as you increase the quantity of labour.
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