This document provides details for an assignment to analyze the operations of a fictitious company. Students are to assume the role of a consulting manager advising the company on whether to continue or discontinue operations. Key information provided includes that the company employs 100 workers producing 6,000 units per month, pays $70 per worker daily wage, and has variable costs of $2,000 per day plus $32 per unit price. Students are asked to evaluate the company's financial performance and recommend how to improve profitability based on a short-term and long-term analysis. A recommendation on whether operations should continue or discontinue is also required.

1. ECO 550 Week 3 Assignment 1 Operations
Decision
http://homeworkfox.com/tutorials/economics/43
51/eco-550-week-3-assignment-1-operations-
decision/
Economics - General Economics
Assignment 1: Operations Decision
Assume you have been hired as a managing consultant by a company to offer some advice that will
help it make a decision as to whether it should shut down completely or continue its operations. It
currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The
daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable
inputs is $2,000 per day. You are told that the firm's fixed cost is “high enough” so that the firm's total
costs exceed its total revenue. The marginal cost of the last unit is $30.
This assignment allows you to determine the specific details about this fictitious company in order to
conduct an environmental scan of this company.
Write a three to four (3-4) page paper in which you:
Briefly describe the details of the fictitious business that you created for this assignment. Assess the
current environmental scan factors. Determine the factors that will have the greatest impact on plant
operations and management’s decision to continue or discontinue operations. Evaluate the financial
performance of the company using the information provided in the scenario. Consider all the key
drivers of performance, such as company profit or loss for both the short term and long term. Be sure to
show the calculations that helped you reach your conclusions. Recommend how the company can
improve its profitability. Then, develop a brief plan to implement the recommendations. Assess the
circumstances in which the company should discontinue operations. Provide a rationale with your
response. Use at least three (3) high-quality academic resources in this assignment. Note: Wikipedia
and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides;
citations and references must follow APA or school-specific format. Check with your professor for any
additional instructions. Include a cover page containing the title of the assignment, the student’s name,
the professor’s name, the course title, and the date. The cover page and the reference page are not
included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Apply the concepts of supply and demand to determine the impact of changes in market conditions in
the short run and long run, and the economic impact on a company’s operations. Examine the factors

2. that affect short-term and long-term production decisions. Use short-run and long-run firm production
and cost functions to evaluate the impact on industries. Use technology and information resources to
research issues in managerial economics and globalization. Write clearly and concisely about
managerial economics and globalization using proper writing mechanics.