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All else constant, as the price of petroleum increases relative to the prices of other inputs to the production process, in their effort to minimize their total costs of production, we can expect to see firms employ:
1. less of each of the inputs of production
2. the same amount of petroleum since there are no substitutes for petroleum
3. less petroleum and more of the other inputs to production
4. more petroleum and less of the other inputs to production
Identify issues management needs to address. Analyze and evaluate the issues identified and a set of actions management should take to address the issues identified.
A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100
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