Profits and Your Franchise Firm (Firehouse Subs)
In this module, we have explored the costs of production which have a direct impact on the profit of your firm. Write an essay that addresses the following questions.
1. How do firms benefit from economies of scale?
2. What might be some potential disadvantages of being part of a large corporation?
3. Suppose business is booming at your firm. It is contemplating adding more capital, but the day supervisor suggests simply hiring more workers. How should the you decide which alternative to pursue?
SLP Assignment Expectations
Use concepts from the modular background readings as well as any good-quality resources you can find. Please be sure to cite all sources within the text and a reference list at the end of the paper.
Length: 2-3 pages double-spaced and typed.
The following items will be assessed in particular:
• Your ability to explain how different economies vary in production.
• Some in-text references to the modular background readings (APA formatting not required).
• The essay should address each element of the assignment. Remember to support your answers with solid references.