The production function of a restaurant includes items such as labor (i.e.,cooks,waiters,a manager),capital (i.e.,ovens,counters,tables,chairs,and a building),and land.In the short run,the owner of the restaurant will optimize production by employing a variable amount of ________ given a fixed amount of ________.

Question

Quizplus · Accepted Answer

In the short run, the amount of capital and land is fixed, meaning the only variable factor of production is labor. Therefore, the owner of the restaurant will optimize production by employing a variable amount of labor given a fixed amount of capital and land.

The Production Function of a Restaurant Includes Items Such as Labor