Impact of surpluses development
The following post has two assignments namely;
1.Impact of surpluses development
Jack and Jill have started a pail factory after the only other pail factory in town burnt down and the owners decided to move to another town. The demand for pails is quite well established. No one would think of paying more than $12.00 for a pail and there is a limit as to how many pails can be sold in a day. You need to have two pails for each cow. In their town there are twelve cows. (There used to be thirteen but one jumped over the moon and hasn’t been seen since.) The cost per pail is set at $3.00 and they go up at a rate of $1.00 per pail produced. What is the consumer surplus, the producer surplus, the supplier surplus and the residual surplus in this market?
The new factory has a chance to adopt a new technology that produces plastic pails. The cost of materials for the first pail is the same as before but the increased cost per unit of production is now $.50 per unit. What is the impact (change) in each of the surpluses developed above.
The cow, which had previously been lost, has now been found. It appears, that it was betrayed by a little dog laughing at it. It has been returned to take its place in the milking rotation. What is the impact (change) on the surpluses developed above.
The Sleep Tight! Resort and Conference Center of Albuquerque, N.M. has a staff of over 300 full time employees and 100 seasonal employees in 10 different job categories. For the past twenty-five years the resort has been run by the Clause family. The Clause family has had experience in running several small motels and were very knowledgeable of the industry. However, while they tried to treat the employees fairly, Mimi Clause, the Manager, knew nothing of proper HR practices and tended to make arbitrary decisions. She left many of the HR decisions to the employment department which consisted of a secretary and an employment supervisor who had been a secretary for Mimi’s mother. Eighteen months ago, the family decided to hire Frank Jones as the new Manager of the resort.
After evaluating the current operations, Frank Jones, decided that the Resort was in fairly good shape except for the lack of standardized Human Resource policies. Very little information existed to support any of the past employment decisions, especially in the area of selection and performance appraisal. Although Jones does not have any direct experience in HR, he had taken several courses in HRM while in college.
In the last eighteen months, Jones has encountered several problems. He would like you to:
• evaluate the situation and identify the problem;
• provide any necessary background information;
• make specific recommendations to resolve the problem.
• identify a timetable and method for evaluating your recommendation.