You are a manager T Glass, Inc.- a mirror and window supplier. Recently, you con
ID: 1229732 • Letter: Y
Question
You are a manager T Glass, Inc.- a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results form the study are summarized in the table below, and are based on 5 units of capital currently available at your plant. Workers are paid $50 per unit, per unit capital costs are $10, and your encapsulated windows sell for $5 each. Given this information, optimize your human resource and production decisions. Do you anticipate earning a profit or a lass? Explain carefully.Labor 0 1 2 3 4 5 6 7 8 9 10 11
Output 0 10 30 60 80 90 95 95 90 80 60 30
Explanation / Answer
In this case, our TC-FC+VC TC=0+10x MC= derivative of FC MC=10 In this case, we can tell that for all levels of production, costs will be greater than profit due to high labor costs. For each unit, costs are 50+10=60 while benefits are 5 each for a loss of 55 per unit produced Hope this helps
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