Prior to beginning work on this discussion forum, read Chapter 7 of the textbook. 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?
Articles
Bernstein, J. (2018, October 7). Amazon’s raise: Unequivocally good news (Links to an external site.). The Journal Gazette. http://www.journalgazette.net/opinion/columns/20181007/amazons-raise-unequivocally-good-news
Follet, C. (2018, August 2). Are humans prepared to overcome resource scarcity in the future? (Links to an external site.) Forbes. https://www.forbes.com/sites/quora/2018/08/02/are-humans-prepared-to-overcome-resource-scarcity-in-the-future/#6193d52466cc
Funk, J. (2020, February 17). The ethics of big data: Why marketers should be careful about consumer privacy (Links to an external site.). Socialnomics. https://socialnomics.net/2020/02/17/the-ethics-of-big-data-why-marketers-should-be-careful-about-consumer-privacy (Links to an external site.)
