suppose you are running the food concession at the athletic events for your college.you sell hot dogs,colas,and potato chips.what are your inputs of capital,labor and materials? if the demand for the hot dogs declines, what steps could you take to reduce output in the short run? and in the long run? please i need the complete ans i would greatly b thankful to that person,i than drawl but sir i need detailed ans please help me out thanks.
As the owner of the food concession at athletic events for your college, let's break down the inputs of capital, labor, and materials.
1. Capital: Capital refers to the assets used in the production process. In this case, your capital inputs may include the concession stand itself, cooking equipment, cash registers, coolers, tables and chairs, signage, and other similar items.
2. Labor: Labor refers to the workforce required to run the concession stand. Your labor inputs may include yourself, employees, or volunteers who prepare and serve the food, handle cash transactions, clean up, and manage operations.
3. Materials: Materials refer to the inputs needed to prepare the food items you sell. For the menu items mentioned, the materials would include hot dog buns, hot dogs, condiments, colas, cups, ice, potato chips, and any other ingredients necessary for making your products.
Now, let's discuss what steps you can take to reduce output in both the short run and the long run if the demand for hot dogs declines.
Short Run:
- Adjust the quantity of hot dogs purchased: If the demand for hot dogs declines, you can reduce output by buying fewer hot dogs from suppliers. This way, you can avoid wasting excess inventory if they don't sell.
- Optimize staffing levels: Reduce the number of employees scheduled to work during events to align with the decreased demand. This will help control labor costs.
- Modify the menu: Consider offering alternative food items that are in higher demand. For example, if people are not buying hot dogs, you could focus on promoting and selling more colas and potato chips.
Long Run:
- Evaluate the menu and product mix: In the long run, you may need to reconsider your food offerings. Conduct market research or gather customer feedback to understand changing preferences. You might decide to replace certain items on the menu or introduce new ones based on demand patterns.
- Modify the concession stand layout: If demand for hot dogs remains consistently low, you could consider reorganizing the concession stand layout to allocate less space for hot dogs and more space for other products that are in high demand.
- Invest in training and technology: In the long run, consider investing in training programs for staff or implementing technology solutions (e.g., automated ordering systems, inventory management software) to optimize operations and reduce costs.
Remember, the appropriate steps may vary depending on specific circumstances, including the magnitude of the decline in demand and your company's capabilities and resources.