Imagine a large multinational firm producing consumer products which announces to cut 20,000 thousand jobs, close 100 plants and rely more on the internet to purchase its supplies. Imagine that the multinational plans to use part of the saved money to increase the promotion of some of its leading brands with the hope to boost sales and increase profits. If the multinational meets these targets what is likely to have happened to its total costs, total revenue, average costs and average revenue? Explain your answers supporting them with theory and illustrations (graphical and/or numerical).
Many hotels charge higher prices during the holiday period and yet there is higher demand for hotel accommodation during these periods. Is this a violation of the law of demand? Explain your answer and use theory and illustrations to support your arguments (graphical and/or numerical).