Unit: Efficiency & Cost of Production
Due Date: Tue 4/25/17
Points Possible: 75
Points Earned: 0
Deliverable Length: Primary Task: 600800 words; Secondary Task: 150200 words
Demonstrate how metrics such as valuation economic profit and related terms are measured and evaluated.
Explain the significance and implications of various economic theories pertaining to profit consumer choice demand and supply forecasting and optimization.
Compare and contrast how production analysis is carried out and be able to evaluate production situations using economy of scale elasticity and other analytic tools.
Primary Task Response: Within the Discussion Board area write 600800 words that respond to the following questions with your thoughts ideas and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear and use examples to reinforce your ideas:
Additional Information: Because the decision about relocating manufacturing operations to the United States is so important the board of directors at AutoEdge continues to systematically discuss every aspect of the situation.
The following week CEO Lester Scholl meets you for coffee to discuss next week’s board meeting.
I’m hearing good things about you he says. Ingrid and George tell me you’ve been very responsive and helpful.
That’s good to hear you say. I’ve enjoyed working with them.
We’re both busy so I’ll get right to the point he says. One of the main objectivesof any business is to be efficient. Without efficiency the company is essentially losing money. Am I right?
Absolutely you say.
What must AutoEdge do he says to obtain economies of scale with production? How do we know that it has achieved economies of scale? Conversely how do we know if it is achieving diseconomies of scale?
That’s a good question you say. I can understand why you ask.
But before you can respond Lester’s cell phone rings. After a minute he ends the call and stands.
I have to get back to the office to handle an emergency he says. Would you send me an e-mail with an answer to my questions please?
No problem you say. I’ll get it to you before I leave work this afternoon.
I appreciate it he says. Thanks.