Two Business Units Operate Out of Different Buildings in a Large

question 113

Essay

Two business units operate out of different buildings in a large city offering distinct products to customers and have their own budgets.However, they must share training facilities located at headquarters which is also located in the city.This often creates conflict because both business units tend to want the training facilities at the same time.Describe the source(s) of conflict that are apparent in this situation and describe two potential solutions that would minimize this conflict.

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Definitions:

MR

Short for Marginal Revenue, which is the additional income earned by selling one more unit of a product or service.

ATC

Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the quantity of output produced.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

Price Charged

The amount of money demanded for a product or service in the market.