Blackrock Pizza Pies

The Finest Pizza in Dublin (Founded 2025)

Discover economic principles by running your own pizzeria! Adjust your inputs and see how they affect production.

Short Run: Adjust Labour

Set a Target

Strategy

Let's find the optimal number of chefs so that the lowest average unit cost is calculated.

💡 Economic Strategy

Strategy: Cost Minimisation. Auto-Pilot has selected 3 chefs as the most cost-effective way to produce at least 100 pizzas per hour.

Fixed Factors of Production

Land: 1 Pizzeria Location

Capital: Industrial Kitchen 🏭

Entrepreneurship: You! 💼

Long Run: Adapt Capital

Invest in better equipment to overcome diminishing returns and achieve economies of scale.

Production Visualisations

Production Goal Progress

120 / 100

Pizzas per Hour

120

Marginal Product

+50

Avg. Cost / Pizza

€21.33

Marginal Cost

€0.40

Cost Breakdown

Total Cost Calculation

Total Cost = Fixed Cost + Variable Cost

Fixed Cost (Industrial Kitchen): €2,500

Variable Cost (3 chefs × €20/hr): €60

Total: €2,560

Average Cost Calculation

Average Cost = Total Cost / Total Pizzas

Total Cost: €2,560

Total Pizzas: 120

Average: €21.33 / pizza

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Total Production

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Marginal Product of Labour

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Average Total Cost

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Marginal Cost

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Key Economic Principles

🗓️ Short-Run vs. Long-Run Decisions

The Short Run is a period where at least one input is fixed. You can't instantly build a new factory. In the simulation, your choice of oven is fixed in the short run. Your only choice is to hire or fire chefs.

Example: Adjusting the Number of Chefs slider is a short-run decision. You're trying to find the optimal number of workers for your current kitchen size.

The Long Run is a timeframe where all inputs are variable. You have time to expand, buy new equipment, or even move to a new location.

Example: Clicking the buttons to upgrade to a Conveyor Belt Oven or Industrial Kitchen is a long-run decision. You are changing the fundamental scale of your production.

📉 Diminishing Marginal Returns

This principle states that as you add more of a variable input (like chefs) to a fixed input (like your oven), the additional output from each new unit of input will eventually decrease.

Pizzeria Scenario: With a Standard Oven, the 1st chef adds 10 pizzas. The 2nd adds 15 more (+15 is the marginal product). The 3rd adds 20 more! But the 4th chef only adds 15, as they start bumping elbows. The 7th chef adds only 2 pizzas because there's just no more oven space. The 10th chef actually gets in the way, causing production to fall (negative marginal returns).

In the simulation: Watch the 'Marginal Product' number and the corresponding chart. You'll see it rise, then fall, and eventually turn red and go below zero. That's diminishing returns in action!

📈 Economies of Scale

This occurs in the long run when increasing your scale of production (by increasing all inputs) leads to a lower average cost per unit. Larger, more efficient equipment can make each worker far more productive.

Pizzeria Scenario: With the small Standard Oven, your best average cost might be €4.50 per pizza. By making a large investment in an Industrial Kitchen, you raise your fixed costs, but you unlock massive production potential. Now, with 8 chefs, you can produce 500 pizzas, and your average cost drops to just €4.32 per pizza. You're more efficient at a larger scale.

In the simulation: Upgrade your capital and add chefs. Watch how the 'Avg. Cost / Pizza' can fall significantly lower than what was possible with the basic oven. That's the benefit of scaling up.