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Part 1


Flexible Manufacturing Plants,


Honda uses flexible plans in the manufacturing of its cars. Discuss whether this method of production results in optimum output. For further information, read The Wall Street Journal, September 23, 2008,








Part 2 


Samuelson & Marks, Number 8 Page 219).


A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights.


    In the short run (next few months), what measures should the restaurant take to maximize its profits? Explain.


    In the long run (next six months and beyond), how can it maximize its profits? (Assume that the impressive state of demand is permanent).


Complete this essay in a Microsoft Word document, with a minimum of 300 words, APA formatted




Part 3


Samuelson and Marks, Question #10, p. 220.


In recent years, Chrysler Corporation initiated three-shift or nearly continuous (21-hours-per-day) production at a number of its plants. Explain why Chrysler’s decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular (and profitable) vehicles, its minivans and Jeep Cherokee? What risks might such a plan pose?  


Complete this essay in a Microsoft Word document, with a minimum of 300 words, APA formatted




Managerial Economics 7th Edition. John Wiley & Sons, Inc.


William F. Samuelson & Stephen G. Marks. (2012).




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