Explore BrainMass
Share

Explore BrainMass

    Is this example an economically efficient move?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Business Week, in an article dealing with management, wrote, "When he took over the furniture factory three years ago...[the manager] realized almost immediately that it was throwing away at least $100,000 a year worth of wood scrap. Within a few weeks, he set up a task force of managers to deal with the problem. And within a few months, they reduced the amount of scrap to $7000 worth [per year]." Was this necessarily an economically efficient move?

    © BrainMass Inc. brainmass.com October 10, 2019, 1:50 am ad1c9bdddf
    https://brainmass.com/economics/managerial-economics/is-this-example-an-economically-efficient-move-350978

    Solution Preview

    Uncertain, it depends on how much he pays the managers to deal with the problems. ...

    Solution Summary

    Is this example an economically efficient move?

    $2.19