Week 4 Dr Rick “Production Economics and Decisions”

Week 4 Dr Rick “Production Economics and Decisions”

“Production Economics and Decisions” Please respond to the following:
From the scenario for Katrina’s Candies(attached), determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs. Recommend the key decision-making criteria that Katrina’s Candies should use for expansion decisions in the short run and in the long run. Determine under what conditions, a company should or should not continue to produce the good or service.
Optional question: (Test your understanding of implicit costs, explicit costs, accounting profit and economic profit) John works 40 hours a week managing his own business, without drawing a salary. He could be earning $600 a week doing the same job for his former employer. He has invested $100,000 of his own money in his business and owes the bank $100,000. The interest on his bank debt is $200 a week. If John’s accounting profit is $1,000 per week, what is his economic profit?
Attachments
ECO550 Week 4 Scenario Script-12-3-13.docx

Is this the question you were looking for? If so, place your order here to get started!