BUSI W4 DB Post Managerial Economics…
Upon successful completion of this module, you will be able to:
? Understand short-run and long-run cost structures.
? Analyze cost-volume-profit and operating leverage.
? Distinguish different market structures.
? Analyze price and output decision under different market structures.
In 550-word count, answer the following questions:
1. Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each.
o What is the break-even level of daily output for the firm?
o What is the degree of operating leverage when daily output is Q = 170?
2. What is the meaning of economics of scope? How do they differ from economics of scale? Provide examples in your discussion.
3. As an employer wants to reduce the production cost during the economic recession, he/she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all. Which method would you choose? Why?
Additional information:
? “Masters, provide your slaves with what is right and fair, because you know that you also have a Master in heaven” (Colossians 4:1, NIV).
? “Look at the birds of the [a]air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they?” (Matthew 6:26, NIV).
? “He who oppresses the poor taunts his Maker, But he who is gracious to the needy honors Him” (Proverbs 14:31, NIV).
? “?Encouraged by Wall Street investors, many companies over the past decade have slashed their full-time workforces, reduced benefits and demanded more output from the remaining workers?Many workers sense that they?re merely expendable components of an impersonal production process involving the manipulation of employees for the sole objectives of the maximization of profit and shareholder value.? ? John Stapleford, Bulls, Bears, and Golden Calves. IVP Academic (p. 104)
The paper must fully meet the following:
? The prompt must fully addressed/answered in the thread.
? The thread is at least 550 words (excluding the title and references pages)
? References at least three peer-reviewed sources (published with the last four years) and one biblical integration
? Provide integration of a biblical concept that supports the paper. Biblical integration is more than just quoting a verse. Be sure to explain the biblical principle seen in the verse and how that principle may be applied to the issue at hand.
? The Bible, NIV, KJV, and NKJV are all acceptable for use in this order.
? All sources are cited in current APA format.
? Proper spelling and grammar are used.
? Sentences are complete, clear, and concise
