Questions 7 and 8 Coursework Example | Topics and Well Written Essays - 500 words

Questions 7 and 8 - Coursework Example This is because he thought that the workers were lazy, or the supervisors were inefficient. Canadian Fabrication and Design has attained its marginal product. This is the output that the company generates from one additional factor of production which is a metal worker. The decision of cracking down employees will not yield to high production levels. This is because the firm has attained its optimal production level and beyond this point it will only yield the same production or less. The best measure that the Chief Executive Officer of Canadian Fabrication and Design should adopt is to expand production of the firm. This will increase the marginal production level of the business and thus sustain the newly employed sheet metal workers. The Chief Executive Officer of the organization should adopt this measure as an alternative to cracking down the number of employees. It will result in success of the organization since the company will make sufficient sales (Hirschey, 2008, p. 21). Priceless goods refers to the commodities which people hold as having non market value which makes them perfectly unsuitable for buying and selling. An example of a commodity that people view as allegedly free is prescription drugs. The various people who make drugs have the responsibility of setting reasonable prices for the medicines. This calls them to restrain the prices. People view these drugs as priceless since they are urgent that they leave companies without price which they acquire in the market (Hirschey, 2008, p. 28). The concept of accounting cost states that a company incurs expenses during production. These expenses show up in the financial statements of a company. Prescription drugs are not priceless since the company incurs expenses in the production process of their manufacture. This refers to a business cost that one can identify and account for in an easy manner. It is a direct expense which an