86 90 45 600 3625 4‚225 15 69.38 84.38 130 50 600 4725 5‚325 12 94.50 106.50 220 Identify the efficient scale of firm. Explain your reasoning. Efficient scale of firm is 30. As this is the minimum output at the minimized average total cost of production. As this is the output where the average total cost is minimum and is the minimum output at that average cost. Part II. Consider the values in the following table for the Winsome Widget Factory. Winsome Widget Factory Output Long Run Average
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are unit cost reductions associated with a large scale of output. Fixed Costs are costs that must be incurred to produce a product whatever the level of output; examples are the cots of purchasing machinery‚ setting up machinery for individual production runs‚ building facilities‚ advertising‚ and R&D. Diseconomies of Scale are the unit costs that increases associated with a large scale of output. Learning Effects are cost savings that come from learning by doing. tend to be more significant
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Case Study#1 Summary Problems facing by Strategic Marketing Unit Two (SMU2) of Fine Food: Unfairly allocated costing system Unreliable performance evaluation standard leads to undervaluation of SMU2 and negative motivational effect on employees. Key Findings: Fine Foods allocates some period costs (including sales and marketing costs‚ media and sales promotion costs‚ and freight out cost) based on weight of product sold. SMU2 thus seems less profitable because the main product of SMU2 is Product
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Discuss Differences Between Fordism and Post-Fordism Work In 1913‚ Henry Ford had an assembly line built in his Detroit plant where T-Ford cars were manufactured. This marked the beginning of a new era in production called Fordism. It was a pattern of industrial organisation and employment policy that occurred in the early twentieth century. Its high point was the period after the Second World War. This essay will be describing the main principles of Fordism‚ post-Fordism‚ their advantages
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CASE 3: APPLICHEM 1. Compare the performance of Applichem’s 4 Release-ease plants. Competitive environment Applichem is a company that offers high product customization. Indeed‚ they provide solutions to specific customer problems‚ and then refine the product and process to arrive at a product with broader application. They created a product that was widely used: Release-ease. This product enabled the customers to clean easily the mold at the end of the process‚ which was a bottleneck
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Institute of Management Technology Nagpur Supply Chain Management Term paper ON Capacity Requirement Planning Submitted to: Submitted by: Dr. Anwar Ali Section-B2C
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MEC 290 Problem Set #5 –due 4/1/2013 1 Problems 1. Consider the following production function‚ f (L; K) = p L+ 1p K‚ 3 where L is the quantity of labor‚ K is the quantity of capital‚ the wage rate is w; and the capital rental rate is r. (a) Compute the M RT SLK : Assume K = 81 and L = 25: Display the M RT SLK on the implied isoquant. (b) Does this production function display‚ decreasing‚ constant or increasing returns to scale? (c) (Short run) Suppose that the …rm has a binding agreement
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unit of production‚ and are usually under the control and responsibility of the department manager. As a general rule‚ most costs are fixed in the short run and variable in the long run. Examples of direct cost such as direct materials‚ direct wages or direct labour cost and direct expenses. • direct materials – raw materials used in a product‚ bought in parts and assemblies incorporated into the finished product‚ carriage inwards. • direct wages – the remuneration paid to production workers
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assumptions are evident in the conversation he is having with the participants at the meeting. In his calculations‚ Mr. French does not give room for the excepted sales volume increase which according to Cooper‚ one of the participants from the production department‚ will increase sales by 20%. He further assumes that the plant capacity is only at 90% utilization implying that it is not fully utilized. However‚ we learn from Williams (who is from the manufacturing department) that the plant capacity
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Art Gonzalez Weekly Assignment 4: Developing Transnational Strategies 1 Compare and contrast international‚ multinational‚ global and transnational strategies which are used by today ’s MNEs. In dealing with the environmental forces‚ global efficiency‚ flexibility and learning‚ to achieve success‚ worldwide operational managerial methods led to four management strategies known as international‚ multinational‚ global‚ and transnational (Bartlett & Beamish‚ 2014‚ p. 215). The following
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