Reference no: EM131849377

Assume you are running a bakery that produces bread as a wholesaler everyday and you drive a pick-up truck to deliver bread to a number of different locations in your town throughout the day. You currently have 9 employees working for you and purchasing 90000 ounces of flour . For simplicity, assume that you just need flour to bake bread. Based on previous numbers you came up with the following production function: You pay $50 per employee per day and 1 cent per ounce of flour. Please discuss different ways to increase your production. In your discussion, please try to explain Why you have such a production function, What might be the reason why you are limited with 1000 bread a day, What may be the right strategy to increase daily production, What may be your suggested price of a bread to ensure profitability, What may change in the long run and how will your production function may be affected? q=min{1000,E^1/2 F^1/2}