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Business, 12.03.2021 15:10 natalie2sheffield

Andrew's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Andrew's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Andrew signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Andrew's kitchen cannot fit more than four ovens, Andrew cannot change the number of ovens he uses in his production of pizzas in the short run. However, Andrew's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Andrew lets them know how many workers he needs for each day of the week. In the short run, the wages paid to these workers are costs, and the payments to lease the ovens are costs.

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