Question

Teresa's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Teresa's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Teresa signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Teresa's kitchen cannot fit more than two ovens, Teresa cannot change the number of ovens she uses in her production of pizzas in the short run.

However, Teresa's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Teresa lets them know how many workers she needs for each day of the week. In the short run, these workers are   inputs, and the ovens are   inputs.

Answer 1

In the short run, these workers are Variable inputs, and the ovens are fixed inputs.

(Since number of workers can be changed, they represent variable input. Since number of ovens cannot be changed in short run, they are fixed input).