-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's kitchen currently has enough room for only one oven. If Silvio employs 3 workers, producing 200 pizzas per week is ________ in the short run and ________ in the long run.
A) impossible; impossible
B) impossible; possible
C) possible; impossible
D) possible; possible

Question

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's kitchen currently has enough room for only one oven. If Silvio employs 3 workers, producing 200 pizzas per week is ________ in the short run and ________ in the long run.
A) impossible; impossible 
B) impossible; possible 
C) possible; impossible 
D) possible; possible

Quizplus · Accepted Answer

In the short run, Silvio is limited by the capacity of one oven, making it impossible to produce 200 pizzas with 3 workers. In the long run, Silvio can adjust all inputs, including adding more ovens, making it possible to produce 200 pizzas.

-Silvio's Pizza Is a Small Pizzeria