You are a manager of a firm that experiences economies of scope between all the products manufactured. If the company decides to sell off an unprofitable business line, it could lead to: a major reduction in costs. only a minor reduction in costs. only a minor reduction in sales. a major reduction in sales

You are a manager of a firm that experiences economies of scope between all the products manufactured. If the company decides to sell off an unprofitable business line, it could lead to: a major reduction in costs. only a minor reduction in costs. only a minor reduction in sales. a major reduction in sales

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter23: Managing Vertical Relationships

Section: Chapter Questions

Problem 8MC

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You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new PCs. According to the sales manager, the client is willing to pay 5800 each for 10,000 new PCs. Your production line is currently idle, so you can easily produce the 10,000 units. The accounting department has provided you with the following information about the unit (or average) cost of producing three potential quantities of PCs: 10,000 PCS15,000 PCsMaterials (PC component) $600$600 Depreciation300225 Labor150150 Total unit cost20,000 PCs $ 600150150$1,050 $975 $900 Based on this information, should you accept the offer to produce 10,000 PCs at $800 each? Explain.
You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new PCs. According to the sales manager, the client is willing to pay $800 each for 10,000 new PCs. Your production line is currently idle, so you can easily produce the 10,000 units. The accounting department has provided you with the following information about the unit (or average) cost of producing three potential quantities of PCs: Based on this information, should you accept the offer to produce 10,000 PCs at $800 each? Explain.
The supply curve overtime is more elastic than the supply curve over the short period of time because, given sufficient time *production techniques become more expensive.new firms can enter the industry and old firms can increase their plant size.producers become more competitive.consumers become more demanding. Economic profit is frequently *greater than total revenue.defined as total revenue minus total fixed cost.irrelevant to the owner of a firm who is concerned instead with accounting profits.less than accounting profit. Diminishing returns *characterize all stages of production.eventually occur in all short-run production situations.are always associated with declining average product in the short-run.exist in the short run, because as additional units of an input are hired, the firm has to accept less satisfactory units.
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Design a process flowchart for hotel staff who are in charge of getting online room bookings and confirming rooms for customers through emails after receiving their orders with a required deposit. Your process flowchart needs to solve 3 following situations: •Out of room •Available rooms matching demand •Available rooms not matching demand