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lectur21-page6 - a Can your production management skills...

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5. You can see that at output level Q2 that LAC is at its lowest point. This would be the most economically efficient output level to achieve. 6. Should you build your facilities as to achieve this level of output right away? You need to answer several questions for yourself before decide.
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Unformatted text preview: a. Can your production management skills handle that large of a facility now? b. Can you manage the labor force required of that size facility? c. Are your abilities to schedule purchases of inputs up to par? ex. Business planning skills....
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