Production in the Short Run

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?
Your initial post should be a minimum of 300 words.

References

Trainer, D. (2018, January 29). Sysco feasts on economies of scale for strong competitive advantage (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/greatspeculations/2018/01/29/sysco-feasts-on-economies-of-scale-for-strong-competitive-advantage/#26e40f74245e
• This article provides information about economies of scale and competitive advantage that will assist you in your Long-Run Average Cost and Economies of Scale discussion this week.
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