Sarah owns a bakery that has four ovens, one full-time exempt administrative employee, and eight part-time hourly bakers. Based on this information,…

Sarah owns a bakery that has four ovens, one full-time exempt administrative employee, and eight part-time hourly bakers.

Based on this information, respond to the following:

  • Distinguish between the short run and the long run. What will differentiate the short run and the long run?
  • Describe fixed inputs and variable inputs. Which inputs are fixed and which are variable in Sarah’s bakery?
  • Why would marginal productivity decline after a certain level of production?
  • How can this problem of diminishing returns or marginal productivity be reduced or removed?

Join the Conversation

1 Comment

  1. 442157 350722Whoah this weblog is magnificent i truly like reading your articles. Maintain up the very good paintings! You realize, a great deal of persons are searching round for this details, you could aid them greatly. 919812

Leave a comment

Your email address will not be published.