Discussion Post: Microeconomics
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:
a) Distinguish between the short run and the long run. What will differentiate the short run and the long run?
b) Describe fixed inputs and variable inputs. Which inputs are fixed and which are variable in Sarah's bakery?
c) Why would marginal productivity decline after a certain level of production?
d) How can this problem of diminishing returns or marginal productivity be reduced or removed?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.