production and cost curve :: essays research papers

Production/Cost CurvesEvery company has some kind of taxation and they altogether have costs that are associated with running the company. It is also trustworthy that if a company necessitates to increase their Revenue, their costs will increase too. It is all companys goal to maximize revenue and either through and through Production or Services, and minimize cost. These things are easy to figure out, exactly actually identifying the production and figuring out how it will increase or decrease with change is very difficult.In Fred Meyer our yield like in all grocery stores, is not a product but the beat of items we snitch. Sales is what drives the company, it is the source for our Revenue. Similar to manufacturing companies where they have follows that tell them how practically they produced, we have numbers that tells us how much we have sold. Every division has a goal that they have to reach. They have to sell their products to come to that number. The number varies da ily, and managers expect from every department that they will sell to a greater extent products compared to function year. For departments to achieve that, managers have to look at the output level and resolve how they can increase profit. It will be very difficult for them to do that because if they want to increase the production/output which is sales in my situation, they would puzzle costs. So if managers decide to try and sell more products, they could hire more employees to persuade customers to buy more products. We can see that when we go to term of enlistment City and Best Buy, they have employees just standing slightly and not doing anything, but once a customer shows up, they are all over them. So for managers in my Home-electronic department they could hire more employees to sell more products. That concept would not be very efficient later on a certain number of employees are hired. If we h ire 10 more employee, than a lot of them would just stand around and be in the way of customers and even each other. This situation could be a bottleneck for people that are trying to get something done. Graph A could best describe this example. This graph shows you what happens to the output when more labor is added. The output will slowly level off and then start to decline. If the managers want to maximize the output they would have to look at the max microscope stage on the graph to get the highest output with the lowest labor force.