Cashless Payments and Methods of Increasing Production - Assignment Example

The paper "Cashless Payments and Methods of Increasing Production " is an outstanding example of a micro and macroeconomic assignment. Introduction of cashless payments (credit cards and debit cards among others); the technology has necessitated South Australian Water Corporation with an opportunity to gather cross-functional and diverse teams under each focus segment, and provide a customized and effective solution to the customers.

Online ordering and supplier platform: technology help the firm grow through market penetration and market growth. This means that number of workforce is reduced thus places little pressure on its already asset-heavy operations. In an increasingly complex and competitive market environment, it is critical to leverage these types of capital intensive solutions with more flexible and faster strategic options.

• Describe the method of production in your industry for a typical firm. That is, is the method of production highly capital intensive? Is it labour intensive? Does a typical firm operate on a large scale?

3 marks

The production is highly capital intensive as it requires a huge amount of money when it comes to purchases, capital equipment and amortization among others.

• Name three fixed costs and three variable costs in your industry.

6 marks

Fixed Costs

• Depreciation
• Insurance
• Rent

Variable Costs

• Production suppliers
• Commissions
• Piece rate of labour

• How can firms in your industry increase production in the short run?

2 marks

The product design model in water supply should allow focusing efforts and consolidating specific expertise around the production and not the function, which will bring in a more focused set of skills and experiences. Secondly, the firms should be able to address the constantly changing business environment in a more flexible and responsible way, as the product design model concentrates decision-making authority in a “product cell” and thus enables faster response when it comes to production.

• Draw a diagram (not copy & paste; you need to draw and label it) showing AVC, ATC, and MC for the short run for firms in your industry. No need to include AFC. Explain the shapes of these curves - what economic principle is behind their shapes? Explain where the MC cuts the AVC and ATC curves.