Chapter 11 Read the chapter and do questions 4 and 8 for Chapter 11 on pages 194 and 195 4.) a. In the usual firm, when resource supply increases, workers per day increases as well. Assuming that the increased supply is due to increased demand, any increase in demand for the product will equal an increase in labor for the firm. Marginal Resource cost increases quantitatively for each firm, and is determined by resource supply. For example, most people like working 8 hour shifts, so if you have 16 hours of work, you would hire two employees. Now let’s say that the demand for your product increases, raising the number of hours of labor you need to 20 hours, which is an additional 4 hours. Now you either have to split up the extra hours among …show more content…
In what sense is the demand for labor a derived demand? The only way to have a demand for labor, is if there is work to be done. Which means that the demand of labor is derived from the initial demand of the product. If there is no work, there is no need for workers, and vise-a-versa. 8.) a.) Demand for pizza increases> demand for employees increases. There are more pizzas to be made and transported. b.) Pizza place opens next door> Demand for pizza decreases> demand for employees decreases. There are less pizzas to be made and delivered by the original store, because the second store fills some of the original demand. c.) An increase in min. wage raises the cost of hiring students>Demand for student employees decreases. The pizza store can only afford to pay a certain amount of employees and still make a profit, the pizza place would be forced to have less employees that are under more pressure to perform at work. d.) The restaurant buys a computer system for taking phone orders> demand for employees would increase because the ease of purchasing pizzas increases, therefore, increasing demand for the product. e.) the restaurant becomes more efficient and advertising increases> increases demand for pizzas> increases demand for
7. Sales had dropped in 1993 but operating profit margins increased due to increase in
When different kinds of menu for lunch and dinner are included, there is an opportunity for attraction of more clients in the new outlet
1.To increase prices according to 4th scenario (total line price increase by 5%) and from short-term revenues income use resources for advertising.
The pizza shop will have a market share of about 55%. This means that the pizza shop will have about 14, 000 customers from the city center and about 8000 customers from the environs of Newburgh. This calculation is arrived at by considering that the shop will be offering different varieties of food that people require.
...t have a job previously, creating a surplus of people needing a job. Meaning that the employers are willing to decrease demand, and make less people do more work.
1.2 Sensitivity analysis shows that pizza sale will be largely influenced by penetration rate of Contadina pasta (Exhibit 2).
sales, it will deficit their companies. Why? Because people will take an advantage of these;
The law of demand states that if everything remains constant (ceteris paribus) when the price is high the lower the quantity demanded. A demand curve displays quantity demanded as the independent variable (the x-axis) and the price as the dependent variable (the y-axis). http://www.netmba.com/econ/micro/demand/curve/
The demand of a product or service represents the quantity desired by buyers. In other words, demand is the quantity of a product or service that people are keen to purchase at a certain price. The law of demand affirm that, if all other factors don’t alter, the higher the price of a product, the less buyers will demand it. This happens because, as price increases, so does the opportunity cost of buying that product. Consequently, people would avoid buying a good that would force them to forgo something else they value more. However, there are other factors beyond price that determine the demand in a market, such as consumer income, tastes and fashions, the price of alternative and/or complementary goods, sociocultural factors, among others. The relationship between price and quantity demanded is known as the demand relationship, which is shown in the diagram, where the demand curve is a downward slope.
When a family eats at home they, will pay less than restaurants because when they buy food from the market they buy for better quality and a better price.
Domino’s Pizza is one of the world leaders in pizza delivery. It establishes in 1960 in the United States and operating with company-owned and franchise owned stores in International markets (Dominobiz, 2013). In this essay we will look through the operation management of Domino’s Pizza which in the core operation. Then, I will analyse the 4V model of attribute of demand for the service, the performance objective of the organisation, provide input-transformation-output diagram and supply network of the organisation. Lastly, provide improvement suggestion for Domino’s Pizza core operation.
In economics, one particular arresting feature is the price effect on demand and supply. With the aim of making commodity and service market balance, demand and supply should tend to be balanced. That is economic equilibrium. Market equilibrium is the situation where quantity supplied and quantity demanded of a specific commodity are equal at the certain price level. As the diagram shows below, at price1 quantity supplied is more than quantity demanded, a surplus occurs. That means producers cannot sell all the products because of the small demand of market. Then price will start to fall. At price 2, quantity demanded is more than quantity supplied, a shortage occurs. In this situation, more products will be made because producers have pursuit
When the price of raw material will go up or down, the production coats will rise or fall. Secondly, the price of substitute products also affect the supply curve. Because the relatived products are competitive relationship, when the price of one product goes up, another will goes down. It will affect suppy. Thirdly, production technology will affect the supply curve. When the level of technology is rising or falling , the production costs will go down or up. finally, the government policies will affect the supply curve. Positive policies will make the supply go up, conversely, it will go down. For example, the govenrment limit the amount of cars which people can buy, it will caused the supply curve down. In addition, the price of product in the future and the development of product company will also affect the supply
There has been exponential rise in the number of eateries in most of the towns worldwide. This is partly brought about by the ballooning urban population, as well as the emergence of working middle class population who find themselves tied up by work in the cities they reside.
The cafeteria serves about one hundred and fifty residents of Cambridge Hall and approximately one hundred residents from Nottingham Hall. The cafeteria serves hot foods, salads, snacks, sandwiches, and beverages. The data has given me information on the percentage of customers that preferred a hot meal (interactive and precooked) to snacks, the ratio of customers that prefer precooked hot meals over an interactive hot meal, line formation, service times at the different stations, arrival times and the location of the different stations. I also learned that the peak hours of operations are from 5:00 p.m. to 6:30 p.m. and that the cafeteria has two cash registers available but only one is being utilized during the peak hours. If customers decide on a hot meal there is a 2 to 1 ratio that customers will purchase a precooked meal over an interactive meal. Through an informal customer survey, reasonable waiting times were established for the precooked line (5 minutes), the interactive line (10 minutes), and the cashier payment line (1minute).