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

Hi.

The answer of the following question is given below as follows :

First of all in India, there are fewer Apple users than samsung. Nobody can afford an iPhone in India. so there is less population of Apple users. IPhones are very expensive, which is why their wireless Bluetooth headphones are also so expensive compared to local or normal wireless Bluetooth headphones. so again among them there is less population that wants to buy those headphones. That means that the demand for iPhone is not that high. So, as we can read in the question above, Apple has announced that it will stop using bluetooth on its next generation iPhone. This is a sudden announcement and as a manufacturer we have to store more stock / inputs for production, so if there is news like this, the amount of inputs we use will definitely affect our production. For that we can do many things such as, first, dispatch the products that are ready to sell. there is no change in consumer preferences, as the question says that current users of this product will buy the Bluetooth headphones. we can do more to sell the remaining production.so now we can make slight changes to the price of the products. As the question says, we cannot get the production rights for one year, please try to get the production rights within a year or sooner. Until then, we can continue production using the remaining inputs we have. suspend purchase orders for supplies if the company has any.

Along with this, this company also produces samsung galaxies bluetooth wireless headphones. so there will be no effect on the Samsung bluetooth headset. because Samsung is a different product. Samsung is cheaper than Apple, so there are a lot of Samsung Galaxy users and there is a novelty for Apple, not Samsung. The demand for Samsung Galaxy wireless headphones will continue. The company can use the inputs in the production of Samsung headphones.

So from this news, the price of Apple wireless bluetooth headphones will go down because from this announcement there will be a great effect on the part of Apple users. The company may make Apple headphones from the remaining inputs it has, but will not request any more tickets for production. The company will reduce the cost of production. or there will be no effect on the prices of Samsung galaxies.

I hope I have served the purpose well.

THANKS.