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A company manufactures auto spare parts. The company employs 1500 workers in its two units. The management of the company wants to move the low technology, labor intensive part of its operation to Bangladesh to take advantage of the low cost of labor there. If the company moves its operations to Bangladesh, from both units, a total of 500 workers will lose their jobs. The expected cost saving is estimated to be $1 million in the first year and $2 million in subsequent years, for nine years.
Based on the paired comparison analysis of the scenario described above, create a report in a Microsoft Word document that includes the following:
1. A comparison of the two alternatives taking into consideration the tradeoffs related to each of them.
2. A proper structure of the problem based on the objectives and consequences for each alternative.
3. Your opinion on the better option among the two alternatives and your reasons for your opinion.
A new chemical has been discovered that can be produced at a constant marginal cost of $10 by its patent holder, Johnson inc. Two industries, A and B, find the chemical, Cloreen, to be useful in their production processes.
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Sandy is planning her consumption over five periods during which she expects her income to be 4, 10, 16, 12 and 8. What is Sandy's permanent income? What is Sandy's marginal propensity to consume out of a temporary increase that boosts first period i..
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