Is the owner of Pat's Pizza Restaurant minimizing costs? Explain using the data in the table.

Marginal Product of Capital

4,000

Marginal Produce of Labor

100

Wage Rate

$10

Rental Price of Pizza Ovens

$500

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mauveporpoise966Lv1

2 Jun 2021

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Consider Patâs Pizza Restaurantâs production decision in both the short-run and longârun. Pat wants to improve the productivity of the firm in the long run. Explain the types of input costs that might be fixed in the shortârun and types of costs that may be variable in the longârun. Provide examples for fixed inputs and variable inputs as well as fixed costs and variable costs for the Restaurant in the short run. What long run economic decisions should Pat make to increase productivity, minimize costs, and maximize profit?

Marginal Product of Capital	4,000
Marginal Produce of Labor	100
Wage Rate	$10
Rental Price of Pizza Ovens	$500

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if marginal product of capital is 4000, and the marginal product of labour is 100 if the wage rate is $10 and the rental price of over is $500, costs do not appear to be minimized. what and how much of labour and ovens should be adjusted to minimize cost.