Week 6 DQs MNG ECO Identify a product produced by a specifi

Week 6 DQs - MNG ECO

Identify a product produced by a specific company (a Camry by Toyota, the Xbox by Microsoft, a computer by Dell…). Describe the factors of production used to produce this product. Describe the types of costs involved in the production of this product. How would you determine whether the company is using the optimal mix of factors of production in the short run?

150-200 words or more

NO SCREEN SHOTS OR IMAGES OF RESPONSE. PLEASE TYPE YOUR ANSWER OR UPLOAD DOCUMENT IF REQUIREMENTS MENTIONED ABOVE ARE NOT MET I WILL GIVE A NEGATIVE RATING

Solution

Considering the product as Dell computers, the factors of production used in manufacture of Compouters are as follows:

1. Resources - Materials such as microchips, metals, plastic casing and other materials are used as resources in manufacture of Dell comouters.

2. Capital - manufacture of computers require a large degree of machinery and technology as computer production is a capital intensive product.

3. Dell computers also require a high degree of entrepreneurship for development and production of new technology.

4. The next factor is demand from the consumer. it relies heavily on consumer demand.

There are two types of costs involved in the production of this product- variable cost and fixed cost. While capital and technology is a fixed cost in the production of computers, Resources used is a variable cost in the production of Dell computers.

In order to determine whether the company is using the optimal mix of factors of production or not, the ratio of the price of the factors of production has to be equated with the slope of the isoquant which shows the various output level that can be produced using the factors of production and if both are equal then the company is using the optimal mix of factors of production in the short run. The current data shows that the company is currently operating slightly below its optimal mix.