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The chief executive officer of Mbeya cement company should not listen to the chief economist. This is because the chief economist's advice is based on the assumption that the company's marginal cost curve is rising. However, this is not necessarily true.
The chief economist's advice is based on the assumption that the company's marginal cost curve is rising. This means that as the company increases its output, its marginal cost increases. This is illustrated in the graph below.
However, this is not necessarily true. The company's marginal cost curve could be flat or even decreasing. In this case, increasing the price would not necessarily lead to a bigger loss on a higher volume. In fact, it could lead to a lower loss on a higher volume.
Therefore, the chief executive officer of Mbeya cement company should not listen to the chief economist. The chief executive officer should analyze the company's marginal cost curve to determine the best course of action.