Frenz Bakery is a large scale bakery that produces bread, hamburger buns, and donuts.

Which of the following is most likely to be an input that can be adjusted in the long run, but not the short run?

Choose 1 answer:
(A) The flour used to bake hamburger buns
(B) The building used as a bakery.
(c) The workers in the bakery.
(D) The electricity used to operate the ovens
(E) The number of sesame seeds on hamburger buns.

Question

Frenz Bakery is a large scale bakery that produces bread, hamburger buns, and donuts.

Which of the following is most likely to be an input that can be adjusted in the long run, but not the short run?

Choose 1 answer:
(A) The flour used to bake hamburger buns
(B) The building used as a bakery.
(c) The workers in the bakery.
(D) The electricity used to operate the ovens
(E) The number of sesame seeds on hamburger buns.

Accepted Answer

∻Solution∻ ‖ a ⋮ Long Run vs. Short Run: In microeconomics, the long run is a period in which all inputs can be varied, while in the short run, at least one input is fixed. ‖ ‖ b ⋮ Identifying Adjustable Inputs: The building used as a bakery (Option B) is a fixed input in the short run because it cannot be easily changed or adjusted. However, in the long run, the bakery can move to a different building or expand its current one. ‖ ∻Answer∻ ⚹ (B) The building used as a bakery. ⚹ ∻Key Concept∻ ⚹ Long Run vs. Short Run ⚹ ∻Explanation∻ ⚹ In the short run, certain inputs like buildings are fixed and cannot be adjusted. However, in the long run, all inputs, including buildings, can be varied to meet production needs. ⚹◊What is the key characteristic that differentiates an input that can be adjusted in the long run but not the short run in MicroEconomics?⍭ Generate me a similar question◊

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