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Assignment 2 Eco 550 In: Business and Management
Assignment 2 Eco 550
Operations Decisions
Assignment # 2
August 7, 2013

1. Briefly describe the details of the fictitious business that you created for this assignment.
There will be 100 employees who work 20 days each month with a salary of $70 each day. The employees will manufacture 6,000 units of output each month which has a variable costs of $2,000 per day. The fixed costs have not been revealed and we are advised they are "high enough" which the total costs will exceed the corporation’s total revenue. The price of the corporation’s output is $32 and the marginal cost of the last unit is $30.
2. Access the current environmental scan factors. Determine the factors that will have the greatest impact on plant operations and management's decision to continue or discontinue operations.
With the information given the main elements of an environmental scan are; the expected time the business anticipates to be in the marketplace (short run vs. long run), the elasticity of demand for the item the corporation manufactures, competition (many firms vs. few firms), and fabrication expenses. Some other trivial elements of an environmental scan reveal the learning curve of employees against experience, turnover, and markets.
Time frame is one of the greatest factors with the provided information regarding corporation ABC since the fixed costs were not provided but advised it would be high. This is believed to be a main concern due to the fact that in the short run not all contributions are variable and variable costs are reliant on fabrication. Manufacturing exhausting the variable inputs is the best manner alters profit losses or

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