Assignment Papers- How did the loss of the Apple contract affect fixed cost for the glass supplier? How might this have affected Average Total Cost (ATC)? Compare this situation to economies of scale?
3- In February 2015, Wal-Mart announced that it would increase the pay rate for all its lowest paid workers. Is this wage increase a growth in fixed costs or variable costs? Would it be affected by output? If Wal-Mart’s sales drop off, how might the store adjust its labor costs?
In fall 2013, Apple loaned its sapphire glass supplier $578 million to set up a manufacturing plant to produce the glass for the new iPhone 6. In November 2014, Apple’s glass supplier lost the contract and promptly filed for bankruptcy. What happened to cause bankruptcy? How did the loss of the Apple contract affect fixed cost for the glass supplier? How might this have affected Average Total Cost (ATC)? Compare this situation to economies of scale?
