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For this assignment, due in Module Five, you will submit the production and costs component of your microeconomic analysis paper. This milestone should be a 3–4-page paper structured as follows: First, it describes three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service. Second, it analyzes the factors that impact your choice of inputs to produce the chosen product or service. Third, it examines the production decisions that you would make based on the analysis of the factors impacting the choice of inputs to produce the chosen product or service.
Specifically, the following critical elements must be addressed:
I. Production and Costs
1. a) Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service.
One example of an input is machines, which are fixed costs. Keep in mind that all inputs will either fall under fixed or variable cost.
2. b) Analyze the factors that impact your choice of inputs to produce the chosen product or service. For example, how would a change in the price of
raw materials impact the combination of inputs?
3. c) Based on this analysis, what production decisions would you make? Be sure to support your decisions with examples or data.
Guidelines for Submission: Part I Milestone Two should adhere to the following formatting requirements: 3–4 pages (not including cover page or appendix), double-spaced, using 12-point Times New Roman font and the most current guidelines for APA formatting.
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