Type: Discussion Board
Unit: Efficiency
& Cost of Production
Due Date: Tue, 4/25/17
Grading Type: Numeric
Points Possible: 75
Points Earned: 0
Deliverable Length: Primary Task:
600–800 words; Secondary Task: 150–200 words
Assignment
Objectives
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
600–800 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 objectives of
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.”
