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Distinguish between the short run and the long run

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Reference no: EM132848554 , Length: Word count:- 300

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:

Question 1: Distinguish between the short run and the long run. What will differentiate the short run and the long run?

Question 2: Describe fixed inputs and variable inputs. Which inputs are fixed and which are variable in Sarah's bakery?

Question 3: Why would marginal productivity decline after a certain level of production?

Question 4: How can this problem of diminishing returns or marginal productivity be reduced or removed?

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

Reference no: EM132848554

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