Question

1) How manufacturing prices, productivity and labor costs in economics. And achievements of the fast challenges for the future.

2) explain world war II. what happened during world war II?

(TYPE AND EXPLAIN EACH QUESTION IN TWO PARAGRAPH)

Answer 1

1.
Firms take economic decisions that are based upon the demand in the economy, how much to produce and what should be the price of the goods for the sell in the market of goods and services. To start production, firm brings different factors of production together. It involves labor, raw material and capital. While working with the inputs, firm manufactures goods. The cost of production depends upon the labor cost, material cost and capital. It brings productivity in the production process. A short run productivity is measured when the increase in the number of labor, increase the marginal productivity. The productivity in long term is measured by increasing, constant or decreasing return to scale or economy of scale. A higher productivity, causes the firm to produce at lower cost that gives the firm to alternatives to set the price. As per the market structure, the firm can be price taker or price maker. If firm is a price maker, then firm can opt for the cost plus pricing, value based pricing and or multi-domestic pricing in the overseas markets. Hence, it is the labor that drives productivity and its cost is the important factor when pricing decisions are taken. The profit maximizing output decisions rely upon the marginal revenue and marginal cost, derived from the marginal principle of economics.
Forecasting of the future is an important part of the economics and it is not about demand, but also about the challenges coming out in the future. These challenges are external when they come as a part of the globalization effects and new players enter the market. These challenges become internal when the organization needs to evolve to be competitive in the changing business environment. It is only possible for the firm to identify the challenges and make proactive decisions to succeed in the market.

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