BUS 640 Managerial Economics
2. At a administration luncheon, two managers had been
overheard arguing in regards to the following assertion: âA supervisor ought to by no means rent
one other employee if the brand new individual causes
diminishing returns.â Is that this assertion
right? If that’s the case, why? If not, clarify why not.
2. The Largo Publishing Home makes use of 400 printers and 200 printing
presses to provide books. A printerâs wage charge is $20, and the worth of a
printing press is $5,000. The final printer added 20 books to complete output,
whereas the final press added 1,000 books to complete output. Is the publishing home
making the optimum enter alternative? Why or why not? If not, how ought to the supervisor
of Largo Publishing Home alter enter utilization?
four. The MorTex Firm assembles clothes solely
by hand although a textile machine exists that may assemble clothes sooner
than a human can. Staff value $50 per day, and every further laborer can
produce 200 extra items per day (i.e., marginal product is fixed and equal to
200). Set up of the primary textile machine on the meeting line will
enhance output by 1,800 items each day. At the moment the agency assembles 5,400 items
a. The monetary evaluation division at MorTex
estimates that the worth of a textile machine is $600 per day. Can administration
scale back the price of assembling 5,400 items per day by buying a textile
machine and utilizing much less labor? Why or why not?
b. The Textile Staff of America is planning to
strike for increased wages. Administration
predicts that if the strike is profitable, the price of labor will enhance to
$100 per day. If the strike is profitable, how would this have an effect on the choice
partially a to buy a textile machine? Clarify.