Refer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 4 workers for every 1 automobile produced. a. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? ________cars How many workers will it hire? ________workers b. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? ______cars How many fewer workers will it need if it decides to match production to these lower sales? _________workers
Refer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 4 workers for every 1 automobile produced. a. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? ________cars How many workers will it hire? ________workers b. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? ______cars How many fewer workers will it need if it decides to match production to these lower sales? _________workers
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 4E
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Refer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 4 workers for every 1 automobile produced.
a. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce?
________cars
How many workers will it hire?
________workers
b. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell?
______cars
How many fewer workers will it need if it decides to match production to these lower sales?
_________workers
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