an ideal location? An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. For achieving this objective, small-scale entrepreneur can make use of locational analysis for this purpose. LOCATIONAL ANALYSIS Locational analysis is a dynamic process where entrepreneur analyses and compares the appropriateness
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revenues were $150,000. Her total explicit costs were $108,000. Her economic profit for the year was: a) $0 b) $2,000 c) $42,000 d) $ 48,000 2) Diminishing marginal productivity of labor occurs because: e) management will eventually make a mistake. f) some workers just aren't very capable. g) additional workers cannot be as effective as previously hired workers because other inputs are fixed. h) machines will start to break down and it takes
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and longevity of a company. Some of the things we will discuss will be that of how my chosen corporation American Express applies some of the forecasting techniques to better develop the company. There will also be the analysis of production plans, master production schedules, and carrying inventory and how it relates to the overall American Express budget. Along with all the above we will also compare and contrast how planning usage differentiates between a service organization such as American
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Economic Theory Used to Determine Management’s Decision to Continue or Discontinue Operations Managerial economics involves all factors available in any market system for production and marketing of goods or services (Farnham, 2010). Managing consultant uses the information come out of this process to develop economic models, which it can help to understand the business environment. Additionally managing consultant applies the economic theories to business decision making (Michaels, 2011). According
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other external factors. The cost per unit depends on how efficient a manufacturing firm is, in execution of its processes. Additional factors of labor, cost of raw materials, or even intellectual property can affect the cost per unit. Factors of production affecting the suppliers are unknown as are the prices per unit of control chip, transmitter, housing, and key ring. Other unknowns of the sourcing requirements are quality and reliability. One may be able to determine quality based on a nation’s
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Assignment one, Mar.28 Instructions 1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? (Your opinion, supported by reasoning, not just a list from the text) A. The factors that contribute to the rapid pace of change in business are human resources, capital, natural resources, entrepreneurship, and technology which all play a factor into a rapid change of pace. The pace is likely to increase because all
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QCT 3 --6.7 points each for a total of 80 points Salvatore’s Chapter 6: a. Discussion Questions: 1,7, and 15 1: (a) What is forecasting? Why is it so important in the management of business firms and other enterprises? (b) What are the different types of forecasting? (c) How can the firm determine the most suitable forecasting method to use? a) Forecasting is used to try and predict the economic activity of a firm’s future. It aims to reduce risk/uncertainty that is faced
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fixed-station assignment; (3) has no process specifications; and (4) combines testing with operation. NTAR Analysis Before Mr. Long assumed his managerial role, the NTAR had a reputation of its employees being agitators and persistent troublemakers. Production was low and costs were out of control. Then Mr. Long reversed the situation over the past 24 months. The group has shown a 53% improvement in the dollar output per man-hour of work, 24% increase in direct labor efficiency and 11% to 12% improvement
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COST OF PRODUCTION CONTENTS 1. Introduction 2. Types of costs 3.1 Opportunity, implicit and explicit costs 3.2 Fixed and variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7
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across industries, along with the importance of scale economies. In some industries, such as microprocessors and airframe manufacturing, economies of scale are huge and a few large firms dominate. In other industries, such as apparel design and management consulting, scale economies are minimal and small firms are the norm. Some industries, such as beer and computer software, have large market leaders (Anheuser-Busch, Microsoft), yet small firms (Boston Beer Company, Blizzard Entertainment) fill
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