Implementations 15 10 10 20 30 40 50 Designs

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Scenario: Suppose you are the manager of a consulting firm that designs and produces custom software solutions for your clients. To accomplish these tasks you supervise a staff of 100 programmer/analysts. For reasons dictated by the needs of your clients, and by the nature of your business, you offer and sell two separate services, technical design specifications (a document describing how best to solve a client’s problem) and actual implementations (in the form of hardware and software).

 

Staff Members

Assigned to Design Projects

Staff Members

Assigned to Implementation Projects

Design Projects Completed

Implementation Projects Completed

0

100

0

15

25

75

20

14

50

50

35

12

75

25

45

7

100

0

50

0

In the following graph, plot the productions possibilities for the consulting firm:

Questions concerning the scenario described on previous page.

a) What happens to the curve if the programmer/analyst union bargains for reduced work hours and 2 weeks additional vacation per year?

b) What happens to the curve if 1/2 of the employees participate in a certification program which increases their productivity in design ?

c) What happens to the curve if a new software program reduces time spent implementing solutions ?

Implementations
15
10
10
20
30
40
50
Designs
Transcribed Image Text:Implementations 15 10 10 20 30 40 50 Designs
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