and the means of production, but both in different forms. Contrasting Capitalism and Socialism, components of Capitalism are that private individuals own the means of production; they market to compete with each other and the individual decides what to produce, how much to produce and what price to sell items at; and the pursuit of profit, private owners decide what the products should cost for receiving a profit. With Socialism, the public or government owns the means of production; the government
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other external factors. The cost per unit depends on how efficient a manufacturing firm is, in execution of its processes. Additional factors of labor, cost of raw materials, or even intellectual property can affect the cost per unit. Factors of production affecting the suppliers are unknown as are the prices per unit of control chip, transmitter, housing, and key ring. Other unknowns of the sourcing requirements are quality and reliability. One may be able to determine quality based on a nation’s
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with some of the large customers b) Arranges financing needed by company c) Sits in weekly production meeting d) Discussing on problems like scheduling, employee and also production. The Engineer is responsible on: a) Design company’s products b) Procurement and maintenance of equipment c) Oversee the supervisor/foreman d) Attends weekly production meetings e) Spend most time on factory floor The Expediter: a) Review work in progress
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buyers to look for the lowest price for memory chips; Scale/Learning Economies and the Ratio of Fixed to Variable Costs • Scale and learning economies are both important to the memory chip market; • Memory chip production requires significant investment in clean production environments • Moreover, the yield of acceptable chips goes up as employees learn the intricacies of the extremely complicated and sensitive manufacturing process; • Finally, whereas investments in memory chip manufacturing
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Changes in the loom workshop: Issue: Using unskilled people (small groups of female school-leavers with no expertise and experience can’t solve the problems during production) they can’t not ensure about the quality and reliability. This production line is at trial period, thus, there are definitely some technical errors and if the workers don't possess any expertise, the output will fall behind not catching up with the work schedule. Productivity fell far below the expected targets on every
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CHAPTER 7 THE COST OF PRODUCTION QUESTIONS FOR REVIEW 1. A firm pays its accountant an annual retainer of $10,000. Is this an economic cost? Explicit costs are actual outlays. They include all costs that involve a monetary transaction. An implicit cost is an economic cost that does not necessarily involve a monetary transaction, but still involves the use of resources. When a firm pays an annual retainer of $10,000, there is a monetary transaction. The accountant trades his
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Operation Management Case study Making Hotplates A group of 10 workers were responsible for assembling Hotplates (instruments for heating solutions to a given temperature) for hospital and medical laboratory use. A number of different models of hotplates were being manufactured. Some had a vibrating device so that the solution could be mixed while being heated. Others heated only test tubes. Still others could heat solutions in a variety of different containers. With the appropriate
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economics deals with aspects of economics and tools of analysis, which are employed by business enterprises for decision-making. One of economic managerial aspects is production function and cost function. Choosing Tanzania Portland Cement Company Limited (TPCC) as a firm of case study, we are interested to examine application of the production function and cost function in the TPCC decision making. It should be noted that, TPCC’s objective is manufacturing, selling and distribution of high quality construction
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The Strategic Window: Identifying and Analyzing the Gap for the New Business Why existing business leave gaps in the market 1. Established business fail to see new opportunities-opportunities do not present them, they have to be actively sought out. 2. New opportunities are thought to be too small-value of a new opportunity must been seen as relative to size of the business which might pursue it. 3. Technological Inertia-opportunities are pursued by innovation. 4. Cultural Inertia-an
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4-12. By using unit contribution margins, we only consider revenues and variable costs that are differential to our decision. While relying on unit gross margins would probably lead to incorrect decision because we take into account revenues and all costs, including both variable costs and fixed costs. However, some costs are not differential to our decision. 4-15. Nonfinancial factors in decisions to drop a product line include the effect on employees who work on that product line, the effect on
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