Should he rent more ovens and hire fewer workers or rent fewer ovens and hire more workers to increase productivity and lower costs of production? Explain.

Production and Cost Minimizing Output

In this assignment, you will analyze fixed and variable costs of a small business. You will also evaluate optimal quantity of output that minimizes costs and maximizes profits.

In this assignment, you will be assessed on the following Outcome:
Demonstrate college–level communication through the composition of original materials in Standard English.
Before answering the following questions, review the Checklist. Then, in a separate Word document, compose a 1–2-page paper consisting of a 450-500-word expository research essay answering the following questions, including computations, based on the rule for minimizing costs of production in regard to a small business plan to minimize costs in order to increase productivity and maximize profits.
1. Pat’s Pizza Restaurant owner incurs various economic costs of production. Explain whether each of the following is an explicit cost or an implicit cost. Which of the two costs should Pat minimize to maximize his account profit?
1.
a. Payments for rented manufacturing equipment.
b. A firm’s use of a warehouse that it owns and could rent to another firm.
c. Wages paid to the firm’s workers.

d. The wages the firm’s owner could earn if he/she worked for another company.
2. Consider the following information in the table for Pat’s Pizza Restaurant and answer the questions below by using the cost minimization rule that takes into account the marginal product per dollar of inputs of production.
Item Cost.