The mortex organization assembles garments

Assignment Help Macroeconomics
Reference no: EM1326499

Managerial Economics: Completing a Cost Analysis

The MorTex Company assembles garments entirely by hand even though a textile machine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day ( i.e., marginal product is constant and equal to 200). Installation of the first textile machine on the assembly line will increase output by 1,800 units daily. Currently the firm assembles 5,400 units per day.

a. The financial analysis department at MorTex estimates that the price of a textile machine is $600 per day. Can management reduce the cost of assembling 5,400 units per day by purchasing a textile machine and using less labor? Why or why not?

b. The Textile Workers of America is planning to strike for higher wages. Management predicts that if the strike is successful, the cost of labor will increase to $100 per day. If the strike is successful, how would this affect the decisions in part a to purchasing a textile machine? Explain.

Reference no: EM1326499

Questions Cloud

Define important information about technology and management : Explain Important information about Technology and management functions and One example of the organization's management expectations of business improvements through technology
Explaining the irrevocable offers and unconscionability : Does a contract exist between Acorn and Bowman? Explain.
What will offer as a network suggestion : With true VPN access to basically an Intranet Environment at each office; there really should not be any need for "Routing" per se unless I am missing something. I only have 2 days for this project before I head back to field, so I just need some ..
Challenges that you personally face in presentations : What are the challenges that you personally face in presentations and What are some successes that you have had in making presentations?
The mortex organization assembles garments : The MorTex organization assembles garments entirely by hand even though a textile machine exists which can assemble garments faster than a human can.
Program implementing in workplace to prevent future burnout : Describe a program you would consider implementing into the workplace to prevent future burnout.
Discuss the layered stack approach : This is meant as a discussion topic, this is not an essay. Describe the OSI and TCP/IP reference models. express  the similarities and differences between them. consider how the layered stack approach assists in our understanding of these referenc..
Explaining the contract and open price : Courts Distributors needed two hundred compact refrigerators on a rush basis. It contacted Eastinghouse Corporation, a manufacturer of refrigerators.
Research design-correlation : What are some potential problems we might encounter, and what strategies would we use to minimize these?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Determining externalities

You're the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees.

  Consumer behavior and consumption function

Pawel spends half of the year working in Britain where he consumes British food q and half of the year in Poland where he consumes Polish food Q.

  Variables which are based on experience of us economy

Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.

  Equilibrium wage for plumbers in factor market

You're the absolute czar and head of union of 1,000 plumbers in Austin, Texas. You've the absolute power to set the wage at which the plumbers will work. You wished to achieve full employment at highest possible wage; (b) you wished to maximize the..

  Sectoral shock and adjustment in long run equilibrium

Illustrate the economy's adjustment to its long run equilibrium only, as the formerly dislocated (and now retrained) labour force is finding employment in new industries.

  Calculate the price and output that maximizes profit

Show the price and output that maximizes profit in this graph. Then use math to calculate the price and output that will maximize the firm's profit. Calculate your profits at this price and output level.

  Impact of tax and social optimum

Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?

  Descriptive analysis of how decontrol of price

Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.

  Compute production possibilities curve

Show these data graphically. Upon what specific assumptions is this production possibilities curve based? What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a lev..

  Consumption function and investment

The following information describes a hypothetical economy (assume all numbers are in billion if necessary) Determine the value of the MPC of this economy?

  Graphical implications of open market purchase

Graphically illustrate the impact of an open-market purchase by the Federal Reserve on the equilibrium interest rate using the theory of liquidity preference and the market for real money balances. (Be sure to label:

  Describing the changes in slope of output demand

Determine, how the following will affect the slope of the output demand curve, and explain your results:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd