Swing shift Your firm prints the novelty baseball cards that ...

[yoroshambo]

Swing shift Your firm prints the novelty baseball cards that candy makers include in their bubblegum. Since you regularly sell 100,000 cards per week, you invested in four separate production lines that can each produce 25,000 cards in a standard 40 hour work week. Now a few of the candy makers are increasing their orders so that you will need to produce 150,000 cards per week, at least temporarily. If you produce these cards by adding a swing shift from 4pm to midnight, you will have to pay workers time and a half. What does this imply for the shape of your short-run marginal cost curve? What does it imply for your pricing?

Question 2

You can invest 100,000 into either project A or B. You estimate that A would succeed with a probability of 0.6 in which case it doubles in value. If it fails, its scrap value is 50,000 . Project B would succeed with probability 0.7, in which case it would have a value of 150,000 . If it fails, project B's scrap value is 30,000 . Which project should you invest in
 a. Project A
 b. Project B
 c. Neither of the projects
 d. You cannot tell from the information presented

[lolol]

Answer to Question 1

Since this increase in production may be temporary, it may not pay to invest in additional production lines. By adding another shift, your labor is more expensive implying that your short-run marginal costs are rising. This means that you must increase prices just to maintain your price-cost margins.

Answer to Question 2

a