TCO A) Suppose you arehired to manage a smallmanufacturing facilitythat produces

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TCO A) Suppose you arehired to manage a smallmanufacturing facilitythat produces Widgets.(a.) (15 points) You know from data collected on the WidgetMarket that market demandand market supply have bothincreased recently. As manager of the facility whatdecisionsshould you make regarding production levelsandpricing for your Widget facility?Remember that supply and demand areabout the market supply and market demand which is bigger thanyour own company.You are being given data on supply anddemand for the whole market and are being asked what effect thathas on you as a small part of that market.(b.) (15 points) Now suppose that following thesupplyand demand changes in (a)asubstitute goodgoes upinprice and your costs of production increase. What newdecisions will you make regarding production levels andpricingfor your Widget facility?

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