-FasterChip, Inc

question 6

Essay

-FasterChip, Inc. is considering five alternative techniques for assembling personal computers. The table shows the amounts of labor and capital required by each of these techniques to make 10 computers a day. Labor costs $15 an hour and capital costs $100 a unit.
a) Which techniques are technologically efficient and which are not? Explain your answer.
b) Which technique is economically efficient? Explain.
c) If FasterChip uses its plant in Mexico, it can lower the labor cost to $10 an hour. Which technique will the company use in Mexico? Explain.

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Definitions:

Light Sleeper

An individual who wakes up easily during sleep, typically due to minor disturbances in the environment.

Central Nervous System

Comprises the brain and spinal cord; the primary information processing center for coordinating bodily functions and responses.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain, down the back, and transmits nerve signals between the brain and the body.

Brain

A complex organ of the central nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognitive abilities such as thought and emotion.