First, you have the right idea of hiring more people but as your consultant I have to inform you what you are doing wrong and things that can help you improve your work environment. Right now, Giovanni you are in the short run which is any period during which the usable amount of at least one input is fixed while the usable amount of at least one other input can change. For example, you have changed the labor of production but, if you are only changing that one factor your business space will keep becoming more crowded and you will produce less because there is not enough room to be efficient.
Now that showing the non beneficial part about of your business it is time to turn that around and make Giovanni 's Pizzeria a great restaura...
... middle of paper ...
...it changes its scale of production. Then, the return to scale is the measure of how much the change in input impacts the change in output (production). Giovanni 's since you have to work in the long run you have a greater input than output because the work you put into it has to be greater and worth the risk. As a result, with the addition of workers at five, the land with extra resturants to make the expansion of your business, capital into which more supplies and utilities are created, and entrepreneurship into understanding the risk and be able to meet the demand for his pizzas. Each of these will all be the root to your success as a skyrocketing pizzeria owner. In conclusion, Giovanni by operating in the long run your business will keep booming, become more productive, keep your customers satisfied, and will be getting the best productive out of your workers.
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