Relationship between labor-capital as factors of production

Assignment Help Business Economics

Reference no: EM13995836

There has been an increasing trend towards outsourcing manufacturing from the US. In the tennis shoe manufacturing industry, some companies such as New Balance still manufacture some portion of their products in the US despite the opportunity of cheaper offshore manufacturing alternative.

Suppose the technology in production of tennis shoe is such that labor and capital are substitutable. How does technology affect the production cost of New Balance and its ability to stay competitive in a global market?

What is the likely impact of technological advancement on the relationship between labor and capital (equipment) as factors of production?

Reference no: EM13995836

Questions Cloud

Use the index of retail saturation as a guide : An entrepreneur trying to find a location for a sporting goods store has decided to use the index of retail saturation as a guide. She knows that Site 1 has a trading area with 42,374 potential customers who spend an average of $87.50 on sporting goo..

Find breakeven quantity or quantities : Q=4000-4p, where P is selling price per unit and Q is quantity demanded. V= $25/unit which is the revenue per unit and Fixed cost = $10025. (a) Find Breakeven quantity or quantities, (b) find maximum revenue, (c) find the maximum profit.

What are defining characteristics of luxury goods industry : What are the defining characteristics of the luxury goods industry? What is the industry like? (Describe market size and growth rate, scope of rivalry, consumer characteristics, degree of product differentiation, etc.) How is the market for luxury ha..

Why is it difficult to predict changes in the business cycle : How does the United States trade deficit, gross domestic product, the employment rate, and the inflation rate impact the economy and relate to the business cycle? Why is it difficult to predict changes in the business cycle?

Relationship between labor-capital as factors of production : There has been an increasing trend towards outsourcing manufacturing from the US. In the tennis shoe manufacturing industry, some companies such as New Balance still manufacture some portion of their products in the US despite the opportunity of chea..

In a competitive labor market-the equilibrium wage rate : In a competitive labor market, the equilibrium wage rate and the number of workers employed are determined by labor supply and labor demand. Firms maximize profit where the MRP = MRC and hence hire labor up to this point. What do you think could be t..

Points that lie outside the production possibilities curve : Points that lie outside the production possibilities curve are ______, and points that lie inside the production possibilities curve are ______.

Market structure under which a business could operate : There are basically four types of market structure under which a business could operate. What are these market structures? Assume that you are the only producer of a product and have a patent that prevents market entry, what market structure do you b..

When engaged in marketing planning : Why is it so important for marketing managers, when engaged in marketing planning, to successfully deal with both Marketing (Big M) and marketing (little m) elements? What would be the likely negative outcome if a marketing plan paid a lot of attenti..

User Account

All Pages