Problem
Consider Pat's Pizza Restaurant's production decision in both the short-run and long-run. Pat wants to improve the productivity of the firm in the long run. Explain the types of input costs that might be fixed in the short-run and types of costs that may be variable in the long-run. Provide examples for fixed inputs and variable inputs as well as fixed costs and variable costs for the Restaurant in the short run. What long run economic decisions should Pat make to increase productivity, minimize costs, and maximize profit?
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Marginal Product of Capital
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4,000
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Marginal Produce of Labor
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100
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Wage Rate
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$10
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Rental Price of Pizza Ovens
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$500
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The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.