QUESTION IMAGE
Question
- inputs and outputs
talias board wax co. is a small, surf - focused operation near east los angeles selling eco - friendly surfboard wax to local surfers and surf shops. talias compact workspace has just enough room to house the five wax - melting stations required for daily production. talia signed a lease that includes both the five stations and the use of the equipment. due to the terms of the lease and the buildings size constraint, talia is unable to change the stores number of wax - melting stations in the short run.
however, talia adjusts the number of workers mixing and packaging the wax each week based upon projected sales. each sunday, talia sets the weekly schedule accordingly. in the short run, labor is a
input, while the melting stations are
inputs.
the following table presents talias daily production schedule.
In economics, variable inputs can be changed in the short - run, and fixed inputs cannot. Since Talia adjusts the number of workers (labor) based on sales in the short - run, labor is a variable input. The melting stations cannot be changed in the short - run due to lease terms and building size constraints, so they are fixed inputs.
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Variable, Fixed