Eco 550 Week 4 Discussions 1 & 2

Week 4 Discussions

Discussion 1

Production Economics

The economic environment is likely to affect short run production for the next 12 months. It influences the use of resources in companies and the economy in general. The economic environment is influenced by the interaction and integration of other macroeconomic parts (William, 2012). As a result of this the economic environment dictates the pace of economic growth, inflation, and national income. This variable is the most likely to affect production in the short run since it changes frequently and rapidly. When there is an adverse change in the economic environment, production is halted since the cost of acquiring resources rises. The raw materials become expensive and thus organizations have to work...