Prouction and Cost

Production and Cost

Economics 365

Production and Cost

This week was both challenging and interesting for Team A. We discussed and unveiled the diverse kinds of markets and their features. We embarked upon how to calculate the usefulness of competitive stratagems, and profit-maximizing approaches. Just to mention a few of the topics we discussed, we talked about the competitive market and its strict conditions. We also discussed competitive markets, short-run, long-run equilibrium effects and monopoly type markets, and most important the efficiency of maximizing profits. There were several other markets we discussed, however the ones mentioned were very interesting to our team.

Our team decided to discuss a Veggiewich shop to share and give input from an economic standpoint. We will discuss the fixed inputs and variable inputs; and the reasoning for making them such. We will examine and state the law of diminishing marginal product and finally distinguish between short-run and long-run decisions that are pertinent to our sandwich shop.

Fixed Inputs

Fixed inputs are materials used in store and are items that cannot easily be changed in the short run (Colander, 2013).Veggiewich for example would need fixed inputs to maintain the store on a regular or long-term basis. These are the work force and backbone in many ways because it's the main mode of production. Veggiewich fixed inputs would equipment like, ovens, refrigerators, and cutting instruments. These are all items that are needed to produce Veggiewich products. Generally they are large assists to a company that would have a major effect on production (Colander, 2013).

Variable Inputs

Variable inputs are materials used within a business setting which are directly related and effected through the amount of production that a business produces. In our circumstance for Veggiewich, the variable inputs would be as followed: Raw materials (bread, beverages, condiments, vegetables, soups, desserts, etc.),...