Question

Answer the following questions in an essay of 3-5 paragraphs:

You are the manager of an independent, family-owned manufacturing company that produces wireless Bluetooth earbuds for Apple and Samsung smartphones at a factory in Mumbai. Apple has just announced that they are discontinuing the use of Bluetooth technologies in their newest generation iPhone, and will instead be switching to a wireless protocol for which you are unable to obtain production rights for one year. Using economic terminology, explain how this news will affect the amount of inputs you utilize for your manufacturing activities for the next twelve months. According to the economic models we have studied this year, and assuming no changes in consumer preferences, what will happen to the prices for your remaining Bluetooth enabled headphones? How might the price of Samsung Galaxies be affected? Why?

Answer 1

First in india there's so less Apple users we have. Not anyone can afford iphones in india. so there's very less population of Apple users. iphones are very expensive so that it's wireless Bluetooth earbuds are also as expensive as comparison to local or normal wireless Bluetooth earbuds. so again amongst them there's more less population who wish to buy that earbuds. That means the demand of iphone is not so high.

So as we can read in above question that Apple has announced that they are discontinuing the use of bluetooth in their newest generation iphone. this is a sudden announcement and as a manufacturer we have to store more stock/inputs for production so if there's is news like this it will definitely effect our production our amount of inputs we use. for that we can do many things like first of all dispatch the products which is ready to sell. there's no change in consumers preference as question says the current users of this product will buy the Bluetooth earbuds. we can put some more efforts to sell out the remaining production.

We can do slightly changes to the price of products. as question says we can't obtain production rights for one year try to obtain production rights within one year or earlier then this. till then we can continue production by using the remaining inputs we have. stop the orders for purchasing of inputs if company have some.

Along with this this company also produce samsung galaxies wireless bluetooth earbuds. so there will be no affect on the samsung bluetooth earbuds. because samsung is different product. samsung is more cheap than Apple so there are so many users of samsung galaxy and there's a news for Apple not for samsung. the demand of samsung galaxy wireless earbuds will remain. company can use the inputs in the production of the samsung earbuds.

So from this news the price of Apple wireless bluetooth earbuds will decrease because from this announcement there will be a big effect of apple users. company can manufacturer apple earbuds from remaining inputs they have but will not order more inputs for production. company will less the production cost. or there will be no effect on the samsung galaxies prices.